What is staking and how does it work on the graph ?
Staking on The Graph is a way for users to earn rewards for providing services to the network.
It involves locking up tokens in a smart contract, which are then used to secure the network and process queries. Stakers are rewarded with a portion of the fees collected from query processing. The Graph uses a delegated proof-of-stake (DPoS) consensus mechanism, which means that token holders can delegate their tokens to validators who will then stake them on their behalf.
Validators are responsible for verifying transactions and maintaining the network’s security. In return, they receive rewards from the fees collected from query processing. To become a validator, users must first lock up a certain amount of GRT tokens in a smart contract.
This is known as “staking” and it allows users to become part of the network and earn rewards for providing services to it. The more tokens staked, the higher the rewards earned by validators. In addition to staking GRT tokens, users can also stake other cryptocurrencies such as ETH or DAI on The Graph.
This allows them to earn rewards in those currencies as well as GRT tokens.
