Bit Fund

Cryptocurrency

Staking Funds

A staking pool allows multiple stakeholders (or bagholders) to combine their computational resources as a way to increase their chances of being rewarded. In other words, they unite their staking power in the process of verifying and validating new blocks, so they have a higher probability of earning the block rewards. Taking pools provide more predictable and frequent staking rewards. Other than that, they allow stakeholders to make a passive income without having to worry about the technical implementation and maintenance of Seng up and running a validating node. The overall idea of the staking pool model is quite similar to the traditional mining pool, which involves the pooling of hash rate in a Proof of Work (PoW) blockchain. However, the staking pool setup is only available on blockchains that employ the Proof of Stake (PoS) model or, in non-POS systems through protocol design features. When a user stakes their cryptocurrency, they essentially lock up their coins in a smart contract or validator node on the blockchain network. This process helps to secure the network and validate transactions by contributing to the consensus mechanism. In exchange for staking their coins, users receive rewards in the form of additional cryptocurrency.