Blockchain & Cryptocurrency Glossary

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Staking Pool

1 min read
Pronunciation
[stā-king pül]
Analogy
A staking pool is like a mutual fund for staking: individual investors pool capital to qualify for validator roles and then share the returns.
Definition
A collective of token holders who combine their stake to increase the probability of being selected to validate blocks and share rewards proportionally.
Key Points Intro
Staking pools operate through these features:
Key Points

Pooled stake: Aggregates tokens to meet minimum requirements.

Reward sharing: Distributes earnings according to contribution.

Operator fee: Pool manager takes a small commission.

Decentralization: Enables small holders to participate in consensus.

Example
A DeFi platform offers an ETH staking pool: users deposit any amount of ETH, the platform runs validators, and periodically distributes pooled rewards minus a 5% fee.
Technical Deep Dive
Pool smart contracts accept deposits and mint pool tokens representing share of stake. The operator runs validator nodes and collects rewards. On each epoch, rewards are credited to the contract, increasing underlying stake per pool token. Redemption burns pool tokens and returns proportional stake plus rewards.
Security Warning
Relying on a pool operator introduces counterparty risk; smart‑contract bugs or malicious operators can lock or misappropriate funds.
Caveat
Pool contracts may have lock-up and withdrawal delays longer than native unbonding periods.
Related Terms
Staking
Validator
Slashing

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