Capital Custody Risk
Capital custody risk refers to who has control over the delegators' principal (staked tokens). There are three subcategories through which the capital custody risk can be clustered: 'Validator-Custody'; 'Self-Custody'; or 'DAO Multisig'.
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For better classification, differentiation and comparability of different Blockchain networks, we identified different Protocol Mechanics.
Staking Mechanics refer to the token economics, which is a new branch of the economy that explains the structure of a particular ecosystem in the blockchain sphere. It describes the study, design, and implementation of economic systems built on blockchain technology. Each platform and blockchain application is developed under its own token-economics model. Proof-of-Stake blockchains not only differ in terms of their 'Protocol Mechanics', but also in terms of certain staking-related parameters, e.g. their reward or inflation rate as well as certain actions that are required by delegators.
Staking your digital assets is not a risk-free endeavor. Please make sure to review all the risks involved before you start your staking operations and make sure to properly research the validator that you want to stake with.