Staking Pool

The combination of the assets of various stakeholders, which yields rewards for stakers.

A staking pool refers to the combination of the assets of various stakeholders, which serves as the figurative pot of gold for these users to earn rewards after a new block has been validated. Although stakeholders can’t use the assets they stake until the staking period is over, the chances of earning rewards depend largely on how long their assets are held in the pool and their share of net staked tokens.

Some pools require miners to stake their assets with the involvement of a third party. However, other pools allow miners to stake assets while still holding it in their wallet.

Staking pools have been used in various ways, by various platforms, for various goals. An exchange can create a staking pool to farm a new token. A decentralized launchpad can create one for prospective investors in a seed, private or public sale. And a blockchain can create one to stabilize the network or its native currency ahead of an important milestone.