Staking of Ethereum PoS
The process of locking up Ether (ETH) to participate in Ethereum’s Proof-of-Stake consensus and earn rewards.
What is Staking?
Staking in Ethereum’s Proof-of-Stake (PoS) system, implemented after The Merge in 2022, involves locking up a minimum of 32 ETH in a validator smart contract to help secure the Ethereum network.
Stakers, or validators, are responsible for proposing and attesting to new blocks in the blockchain, ensuring transaction validity and network consensus. In return, they earn rewards in the form of newly issued ETH and transaction fees, typically yielding 2-5% annual percentage return (APR) as of 2025.
To stake, users run a validator node using an execution client (e.g., Geth, Besu) and a consensus client (e.g., Lighthouse, Prysm), requiring reliable hardware and internet to avoid penalties like slashing, where a portion of staked ETH is lost for malicious or negligent behavior.
Staking can be done solo, requiring technical expertise, or through staking pools (e.g., Lido, Rocket Pool) for those with less than 32 ETH or limited technical skills, though pools introduce third-party risks. Over 1 million validators are active as of 2025, with more than 33 million ETH staked, representing over 25% of Ethereum’s total supply, per beaconcha.in, enhancing network security and decentralization.
Related Terms
Trading Fee
A fee charged by a Perp DEX for executing trades.
NFT and NFT Marketplace
Unique digital tokens (NFTs) on Ethereum representing ownership of art, collectibles, or utilities, traded on marketplaces like OpenSea and Blur.
Market Manipulation (Prediction Market)
The act of intentionally distorting a prediction market’s prices to influence outcomes or perceptions.
Nakamoto Coefficient
A metric quantifying blockchain decentralization by identifying the minimum number of independent entities needed to compromise network consensus, typically 33% of stake in proof-of-stake systems or 51% of hash power in proof-of-work.
Liquidity Fragmentation
The dispersion of liquidity across multiple pools, chains, or exchanges, leading to inefficient pricing and higher costs.
Maintenance Margin
The minimum collateral required to keep a leveraged position open.