Staking

Staking means locking up a cryptocurrency to help operate and secure a blockchain that uses proof-of-stake, in exchange for rewards paid in that same currency. It works somewhat like earning interest, but the reward comes from the network's own issuance and fees rather than a bank lending your deposit to someone else. Staked funds are often locked for a period and can be reduced ('slashed') if the validator you delegate to misbehaves, so returns are not risk-free. Many exchanges offer simplified staking that handles the technical setup for you, usually for a cut of the rewards.