Tezos Staking

Tezos staking is the way the Tezos blockchain stays secure while rewarding people who help validate transactions, and I tell it like a chronicler reading old chat logs where code and oath look the same; at its heart sits liquid proof of stake, a form of delegated validation that lets holders lend their validation rights without moving their tokens. Bakers are the active validators who must lock a large amount of XTZ and run reliable nodes, and they create blocks, vote on proposals and collect block rewards. Delegators are passive participants who keep custody of their coins and assign their validation rights to a baker to earn a share of rewards. Becoming a baker needs both the stake and technical work to maintain hardware and software with minimal downtime. Delegating needs little technical skill and no large collateral, so it opens the network to many more people and helps decentralize security. Rewards are paid out after a delay tied to the chain’s cycle system, and snapshots determine who gets what. There are tangible benefits to staking: you earn passive income on idle tokens and you can help secure and govern the network. The entry barrier is lower than on some networks because delegation allows almost anyone to join without running a full validator. But risks exist. Bakers can be punished if their nodes misbehave or sign conflicting blocks, a penalty called slashing that cuts into their stake and therefore harms those who depend on them. Delegators must trust bakers to perform well and to distribute rewards fairly, and they should check a baker’s uptime and fee policy before delegating. Centralization is another risk when too many tokens pile on a few bakers, and delegators should diversify or pick reputable bakers to reduce that risk. For safety, use non-custodial tools such as hardware wallets or secure wallet apps that support delegation, so private keys never leave your control while you delegate. In short, Tezos staking mixes community, incentives and governance into a living system; it lets token holders choose between running a baker and taking on responsibility or delegating and earning rewards with fewer demands, and either choice helps keep the ledger honest and evolving.