Staking Pool
A collective of digital assets, typically Ethereum (ETH), pooled by multiple users to meet the minimum requirements for staking and earning rewards.
What is Staking Pool?
A staking pool is a mechanism where multiple users combine their digital assets, such as ETH, to collectively meet the 32 ETH threshold required to run a validator node on the Ethereum proof-of-stake (PoS) blockchain. Since Ethereum’s Beacon Chain upgrade in 2020, running a validator node independently demands 32 ETH, which can be a significant barrier for individual stakers. Staking pools allow participants to contribute smaller amounts of ETH, which are aggregated by a pool operator who manages the validator node and participates in Ethereum’s consensus process to secure the network and propose blocks.
Participants in a staking pool share the resulting block rewards and transaction fees proportionally based on their contribution to the pool, minus any fees charged by the pool operator. Platforms like Lido, Rocket Pool, and Stader are examples of community-built solutions that facilitate pooled staking, often offering liquid staking tokens (e.g., stETH) that represent users’ staked ETH and allow trading or use in DeFi while staking. While staking pools lower the entry barrier and enable broader participation, they introduce risks such as reliance on the pool operator’s security and potential centralization, which users must evaluate when choosing a pool.
Related Terms
51% Attack
A 51% attack occurs when a single entity or group controls over 50% of a blockchain’s computing power or stake, allowing them to manipulate the network’s transaction ledger.
DYOR
Do Your Own Research (DYOR) is a widely used acronym in the digital asset space, urging investors to independently verify information before committing funds to any project or token.
Crypto-backed Stablecoin
A digital asset backed by other digital assets, often overcollateralized to ensure stability.
Genesis Block
The initial block in a blockchain that establishes the foundation of the network and its digital asset.
Japan Stablecoin Policy
Japan's regulatory policy permitting licensed banks, trust companies, and fund transfer providers to issue fiat-backed stablecoins under strict reserve requirements.
Supervisory Capital Assessment Program (SCAP)
A one-time 2009 Federal Reserve stress test of the 19 largest U.S. bank holding companies to determine capital needs amid the financial crisis.