What is Staking pool

A staking pool is a wallet jointly owned by different investors who group their resources to increase the likelihood of being rewarded. Since the probability of being chosen by the protocol to validate transactions is increased with a higher number of locked tokens, staking pools increase the probability of obtaining rewards in a blockchain that is based on the proof-of-stake consensus mechanism.

 

Staking pools do not imply greater rewards per validation, because if the authentication process goes through successfully, the reward obtained would be distributed amongst the various partakers. However, rewards would be more probable; therefore, it is expected that rewards would be obtained more frequently.

Staking pool

A staking pool is a wallet jointly owned by different investors who group their resources to increase the likelihood of being rewarded.

Related terms

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