Bonded Proof-of-Stake
Staking Type
Bonded Proof-of-Stake

Subform of PoS, in which token-holders can still participate in the security and maintenance of a blockchain without having to actively operate a node. In BPoS systems, token-holders delegate the validation-rights contained in their token to a validator of their choice, increasing the respective validators delegated stake and ultimately increasing its' likelihood of validating more blocks.

This delegation is usually non-custodial, so token-holders remain the sole owners of the token itself. Both, validators and their delegators are subject to slashing in BPoS systems. In most BPoS networks, the validator set is fixed. Hence the amount of validators eligible to participate in the maintenance of a blockchain is pre-defined (oftentimes this value can be change through governance).

Staking Type

Blockchains are run and maintained by a decentralized, globally distributed network of nodes and not a central entity. Hence, a mechanism is needed that helps this network, often-times consisting of unknowing or untrusting parties, to establish security, validity, and guaranteeing availability. Currently, there are two main mechanisms, namely Proof-of-Work and Proof-of-Stake, that are used in blockchain networks to provide for security through economic incentives and cryptography. Furthermore, these mechanisms help to appoint the next node which gets to add a new block to the blockchain.

Explore other terms

Protocol Mechanics
For better classification, differentiation and comparability of different Blockchain networks, we identified different Protocol Mechanics.
Staking 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 Risks
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.