Blockchain & Cryptocurrency Glossary

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Bonding

Pronunciation
[bon-ding]
Analogy
Bonding is like posting a security deposit when renting an apartment—you lock up funds to guarantee your commitment.
Definition
The process of locking tokens in a staking contract to become a validator or delegator, providing collateral for consensus participation.
Key Points Intro
Bonding secures networks via:
Key Points

Collateral lock-up: Tokens cannot be moved during the bond period.

Validator activation: Required stake to participate in consensus.

Slashing exposure: Bonds are subject to penalties for misbehavior.

Unbonding schedule: Release occurs after a predefined delay.

Example
A Cosmos user bonds 100 ATOM via the staking module to become a delegator and earn rewards.
Technical Deep Dive
Bonding involves sending a MsgDelegate transaction to the staking module, which updates the bonded token pool and assigns delegation shares. The consensus engine includes the bonded stake in validator weight calculations. Unbonding uses MsgUndelegate, triggering a vesting schedule before tokens return to liquid balance.
Security Warning
Bonded tokens are illiquid and at risk of slashing; only bond what you can afford to lose.
Caveat
Bonding thresholds may lock small holders out of direct validation.
Related Terms
Unbonding Period
Delegator
Slashing
Validator
Staking Rewards

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