Staking Token
Place stake to secure a Proof of Stake network
Type: Staking Token
Function: Participants in a Proof of Stake protocol provide staking tokens to secure the network. They receive rewards in exchange for locking these tokens in the protocol.
Use Cases: POA tokens can be bridged from the current chain to a sidechain implementing Proof of Stake and used as staking collateral. This is possible for chain validators, who are running nodes, and chain delegators, who provide additional stake to validators but do not need to run nodes.
What is Possible? It is possible to have a multi-use token with utility functionality on one chain and staking capabilities on another. Using the TokenBridge, POA can be bridged to a new network and used as a staking token on that chain. A chain enabled with the POSDAO protocol is a candidate for this type of functionality.
In addition to using POA as a single staking token, it is also possible to create a new staking token using a "basket" of utility tokens. An application like Balancer provides the opportunity to introduce Multi-Collateral Staking.
Last modified 2yr ago
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