How does staking work on near ?
Staking on Near is a process by which users can lock up their tokens in order to help secure the network and earn rewards.
When users stake their tokens, they are essentially providing a guarantee that they will not attempt to double-spend or otherwise abuse the network. In return for this guarantee, stakers are rewarded with additional tokens. The process of staking on Near is relatively straightforward.
First, users must choose a validator node to stake their tokens with. Validator nodes are responsible for verifying transactions and maintaining the network’s consensus rules. Once a user has chosen a validator node, they must deposit their tokens into the node’s smart contract address.
After the deposit is confirmed, the user’s tokens will be locked up for a predetermined amount of time (usually several weeks). During this time, the user will receive rewards in the form of additional tokens based on how much they have staked and how long they have been staking for. At any point during this period, users can choose to withdraw their stake from the validator node and receive their original deposit back plus any rewards earned during that period.
However, if users choose to withdraw before the end of the predetermined period, they may incur penalties or lose out on potential rewards.
