ARCIPEDIA · YIELD

Plain English

Staking is the process of locking up a proof-of-stake asset (like Ether or Solana) to help secure its blockchain. In return, the protocol pays you rewards in the form of newly issued coins. It is the closest on-chain equivalent to a yield-bearing deposit.

How it actually works

Validators run software that proposes and verifies new blocks. Each validator must lock up a minimum amount of the native asset as collateral. Honest validators earn rewards. Dishonest ones lose part of their stake — called slashing.

You can stake directly (by running a validator) or indirectly through staking-as-a-service providers, liquid staking protocols, or your exchange.

What it means for you

For Ether holders, staking is the baseline. Current yields run roughly 3–4% annually, paid in ETH. For meaningful capital, the choice of how to stake (solo, pool, liquid, custodial) is a custody and tax decision as much as a yield decision.

How ARCrypto teaches this

We walk you through staking architecture for HNW positions: which method protects custody, which produces clean tax treatment, and which exposes you to slashing or counterparty risk.

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Educational content only. Not investment, tax, or legal advice.