Tezos (XTZ) Staking | Hashpower Foundation
"Unlocking the Power of Tezos Staking: How It Works
For many traders and investors, staking provides an opportunity to earn rewards simply by holding Tezos. Certain cryptocurrencies, including Tezos, can be staked. This means you can 'stake' some of your Tezos holdings and, over time, earn rewards for allowing the blockchain to utilize your Tezos.
Cryptocurrencies eligible for staking operate on a consensus mechanism called Proof of Stake. This method verifies and secures transactions on the blockchain, involving individuals who have already invested in the blockchain. The exact implementation may vary, but fundamentally, users lock up their cryptocurrency—similar to a deposit—and, in return, have the chance to add a new block to the blockchain. Typically, the odds of being selected to validate the next block are proportional to the amount staked and the duration the user holds their cryptocurrency. In this way, the network rewards those who are most heavily invested. When the selected node successfully validates a block, it receives the staking reward.
In simpler terms, by delegating your Tezos, you receive additional Tezos from the network. Staked tokens serve as collateral for the legitimacy of new transactions. If fraudulent transactions are detected, users may lose a portion of their stake (their staked amount gets 'slashed') as a consequence of network penalties."