CAGA Staking Essentials

Staking for the new network has started! Secure your slot here.

What is Staking?

Staking is a way to contribute to the security and smooth operation of the CAGA network, while potentially earning rewards for your participation. Here's a simplified breakdown:

• Imagine a community garden: Everyone contributes plants (tokens) to a shared space.

• Healthy garden, happy community: By participating (staking), you help keep the garden (network) secure and running efficiently.

• Everyone benefits: In return for your contribution, you earn rewards (like fruits or vegetables) in the form of CAGA tokens.

Here's a more technical explanation:

In Proof of Authority(PoA) systems like CAGA, validators are responsible for verifying transactions and adding new blocks to the blockchain. Staking essentially involves locking up your CAGA tokens for a set period. These locked tokens act as a guarantee of good behavior for the validators.

• Benefits of Staking:

  • Network Security: Staking discourages validators from acting maliciously, as they risk losing their staked tokens.

  • Rewards: Validators earn CAGA tokens as a reward for their participation.

  • Community Governance: In some PoA systems, staking grants voting rights, allowing you to participate in key network decisions.