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Staking Pool


A staking pool can be defined as a combination of all the assets provided by various stakeholders in a proof-of-stake (PoS) network.

Understanding the term

The staking pool meaning can be understood in reference to the mechanism for participating in a PoS consensus network. It helps unify the staking power in a PoS network which is needed for decision making. Staking power varies with the percentage of total assets held in a network. The computational power in any PoS-based network is directly proportional to the total number of assets held at any particular moment. A staking pool can be a useful tool that gathers multiple crypto tokens from numerous stakeholders into one place.

By forming a staking pool, you can grant the operator the status of what is known as a validator. A validator can reward the stakeholders with tokens for contributing their individual computational resources so that the project may develop further in the future. The chances of earning rewards increase with individually made contributions. Those who administer staking pools are known as operators.


A staking pool is primarily used to earn more crypto in exchange for sharing one’s computational resources, but it is only available for PoS crypto projects.

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