Staking

Staking serves as a fundamental pillar of the PRYSM blockchain, deeply ingrained in its value proposition and pivotal for network security. By bonding PRYSM tokens to specific validators, staking ensures the integrity and resilience of the PRYSM blockchain.

Before exploring the intricacies of staking, it's imperative to grasp the consensus mechanism that underpins the PRYSM blockchain. Operating as a proof-of-stake blockchain, PRYSM relies on the Tendermint Consensus protocol, empowered by the Cosmos SDK, to fortify its network.

The Tendermint Consensus operates through a series of meticulously orchestrated steps:

1. A validator, known as a proposer, is meticulously selected to put forward a new block of transactions to the network.

2. Validators engage in two rounds of voting to collectively decide whether to validate or reject the proposed block. Should it be rejected, a new proposer is promptly chosen, initiating the process afresh.

3. Upon unanimous acceptance, the proposed block is promptly signed and seamlessly integrated into the blockchain.

4. Transaction and gas fees accrued from the block are equitably distributed among the Treasury, validators, and delegators as staking rewards. Proposers are additionally incentivized for their proactive involvement.

Validators maintain comprehensive records of all transactions within the PRYSM network, meticulously cross-referencing them against proposed blocks during the voting phase. With multiple independent validators partaking in the consensus process, the potential for accepting fraudulent blocks is significantly mitigated. This robust mechanism not only fortifies the security of the PRYSM blockchain but also fosters trust and reliability in every transaction, nurturing a resilient ecosystem.