‘Stakers’ ensure the network is secure and that validators are honest by requiring validators to stake their tokens. If validators act maliciously, they lose their staked tokens and access to the network.
A high staking ratio is particularly important for security as many PoS protocols give governance rights in proportion to the user’s staked tokens. 51% attacks, also known as majority attacks, have been a big concern for crypto users over the last years in proof-of- work models and while it is less common in PoS protocols than in PoW protocols, it is still possible. This would occur if a PoS protocol had a low staking ratio, making it easier for a malicious actor to obtain the majority of staked tokens in shallow waters.
Casper Blockchain has a high staking ratio of 76.37% and CSPR’s current annual percentage rewards rate is at 9.66% (November 15th, 2022), where rewards are earned every two hours.
The PoW model requires expensive resources and technical knowledge to take part in consensus, whereas PoS protocols can be engaged by everyday users. This, thereby, forms stronger bonds with wider audiences, significantly increasing participation and validation. Since PoS chains rely on the support of their communities, a stronger bond between the protocol and user base is essential. Therefore, the higher the staking ratio amount, the more trust there is in a protocol.
You can utilize your CSPR tokens by locking them over a period of time. By doing so, you will also help Casper maintain and improve its overall security and efficiency.
The staking process begins with the user acquiring the protocol’s tokens. Users can then use the protocol’s staking instruments to lock their holdings by following Casper’s instructions.
You can stake CSPR directly on Casper using the Casper Signer that acts as your CSPR wallet, keeping your accounts secure and helping you perform actions like staking, un- staking, or sending tokens to another account.
Crypto exchanges can also be used to stake tokens. Highly regarded crypto exchanges are quite selective when it comes to providing staking services for blockchains, so when you see this service provided on an exchange it is a good indicator of overall trust. CSPR owners can stake their tokens via those leading exchanges such as Uphold, Coinlist, and Bitrue. To see all of the exchanges where CSPR is listed, click here.
Staking is at the heart of layer 1 blockchains providing security, trust, scalability and decentralization. This is why the Casper Network mainnet was built on this concept.
You can learn how to stake CSPR here or by watching this video, and start reaping the rewards for your staking today.
