What Is Staking?
Definition
Staking is the process of locking cryptocurrency tokens in a smart contract to secure a blockchain network or earn rewards, typically in the form of more tokens.
Staking serves two main purposes: securing proof-of-stake blockchains and earning passive income from locked tokens.
- Protocol staking: Lock tokens to validate transactions on proof-of-stake chains (ETH, SOL). Earn network rewards for securing the chain.
- Liquidity staking: Deposit tokens into a DEX pool to earn trading fees and sometimes additional protocol token rewards.
- Governance staking: Lock governance tokens to earn voting rights and sometimes revenue sharing from the protocol.
- Single-asset staking: Deposit a single token to earn rewards, often paid in the same token (inflation-funded) or in the protocol's revenue.
- Creates demand to hold (not sell) tokens
- Reduces circulating supply, supporting price
- Aligns long-term holders with the project
- Generates platform activity and network effects
Implementing staking requires custom smart contracts beyond what CoinDevTools provides. After creating your token, you can integrate with third-party staking platforms or hire a developer to build custom staking logic.
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Create a Stakable TokenRelated Terms
Tokenomics
Tokenomics is the economic design of a cryptocurrency token — covering supply, distribution, utility, incentive mechanisms, and how these factors affect the token's value over time.
Smart Contract
A smart contract is a self-executing program stored on a blockchain that automatically enforces the rules of an agreement when predefined conditions are met.
SPL Token
An SPL token is the standard fungible token format on the Solana blockchain, equivalent to ERC-20 on Ethereum.
ERC-20 Token
ERC-20 is the most widely used token standard on Ethereum and EVM-compatible chains, defining how fungible tokens are created and transferred.