1/ Today’s leading blockchains are undergoing a massive shift from PoW to PoS consensus mechanisms.
This shift away from PoW dominated networks is already creating second-order effects in the form of new business models that earn rewards for securing PoS networks.
This shift away from PoW dominated networks is already creating second-order effects in the form of new business models that earn rewards for securing PoS networks.
2/ A PoS network incentivizes stakers to contribute to its security by rewarding validators with block rewards composed of network inflation and transaction fees.
Each PoS network exhibits different active staking rates depending on the activity and incentives at play.
Each PoS network exhibits different active staking rates depending on the activity and incentives at play.
3/ Which brings us to STaaS.
Staking-as-a-Service is a relatively straightforward business model - users transfer or delegate their assets to a STaaS provider that manages a set of validators.
This allows any user to enjoy the benefits of staking.
Staking-as-a-Service is a relatively straightforward business model - users transfer or delegate their assets to a STaaS provider that manages a set of validators.
This allows any user to enjoy the benefits of staking.
4/ While STaaS democratizes the staking process for crypto users, it doesn’t come without risks.
Some STaaS providers help to mitigate slashing risks with their staking expertise, such as @BlockdaemonHQ, which offers a 100% insurance policy on slashing events that may occur.
Some STaaS providers help to mitigate slashing risks with their staking expertise, such as @BlockdaemonHQ, which offers a 100% insurance policy on slashing events that may occur.
5/ Learn more about Staking-as-a-Service in the full article from @chasedevens and @r_sale messari.io
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