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What Is Staking & How Does It Work in 2025?

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Published:

May 4, 2025

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R0AR Updates

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  • Writer: Coinpresso Projects
    Coinpresso Projects
  • Apr 28
  • 5 min read

Updated: May 5


R0AR will play a central role in the 2025 crypto staking market.
R0AR will play a central role in the 2025 crypto staking market.

Trading is often the most cited example of how to turn a profit with cryptocurrencies, but in reality, many of the most successful players in the crypto market have held onto their tokens instead of trying to earn short-term rewards. However, this doesn't mean that long-term holders are simply sitting on their hands as the market moves up and down; the majority of them are using crypto staking to earn returns without selling.

Crypto staking is constantly growing in importance as a growing number of traders and investors take a long-term bullish position in crypto. In 2024, the market witnessed an unprecedented rise in institutional demand and growing acceptance from governments, which has led many experts to believe that crypto is going to play an important role in financial markets for decades to come.

Staking crypto allows users to earn rewards on their holdings without forcing them to sell. In essence, staking functions similarly to earning interest in a bank, but rates are generally higher, and due to the decentralized nature of blockchain technology, there are a handful of extra advantages.

In 2025, crypto staking is accessible to anyone with basic knowledge about how to use crypto. In addition, the R0AR staking feature, which will be fully integrated into the R0AR wallet and xCHANGE, is set to go live, bringing with it an even more accessible crypto staking experience along with a broad range of decentralized finance features.


Crypto Staking: Get Rewarded for Supporting a Blockchain Network


Crypto staking is the backbone of cryptocurrency networks that use some iteration of the Proof-of-Stake (PoS) system. On these networks, transactions are confirmed by validators that lock tokens in return for the opportunity to earn returns generated by transaction fees. Generally, the network will set a minimum amount of tokens that have to be staked in order for a user to become a validator.


Validators play a crucial role in maintaining the everyday function of the network through this staking process. The staked tokens mean that the validator has "skin in the game"; if they were to act fraudulently or approve nefarious transactions, the network will take away their staked tokens as a punishment. This mechanism incentivizes validators to act honestly and maintain the network's integrity.


The average crypto trader is unlikely to want to run a full validator, as this can require large sums of staked crypto and technical expertise. These users can contribute to staking pools, where any number of users can pool their resources under a validator and earn a percentage of the staking rewards. This allows more users to participate in staking and earn rewards without the high barriers to entry of becoming a solo validator.


In summary, staking is the process of locking up cryptocurrency to support the operation of a blockchain network. By doing so, users can earn rewards while contributing to the network's security and efficiency.


Staking: A Brief History of One Of Crypto's Most Popular Features


To understand how crypto staking works in 2025, it's important to understand the history of crypto and how staking emerged as one of its most valuable use cases. Satoshi Nakamoto's Bitcoin whitepaper introduced the idea of a decentralized blockchain ledger with a native currency that allowed peer-to-peer transfers without the involvement of a third party, such as a state or bank. Even though staking is not possible on the Bitcoin network, it is where the first building blocks of crypto staking can be found.


Bitcoin operates on a Proof-of-Work (PoW) consensus mechanism. In PoW, miners compete to solve complex mathematical puzzles to validate transactions and add new blocks to the blockchain. This process requires significant computational power and energy consumption. Because PoW relies on miners' computational work, it doesn't inherently support staking. The security of the Bitcoin network is guaranteed through the collective processing power of these miners.


A few years after Bitcoin went live, discussions around something called Proof-of-Stake (PoS) began to emerge. PoS is a different consensus mechanism where validators, rather than miners, are responsible for validating transactions and creating new blocks. 


In PoS, validators are chosen based on the number of tokens they "stake" or hold as collateral. This mechanism allows for staking, as token holders actively participate in the network's operation.


One of the earliest iterations of PoS was launched by the Peercoin cryptocurrency. Peercoin introduced a more energy-efficient alternative to PoW, paving the way for future PoS projects and demonstrating the feasibility of staking as a means of securing a blockchain network.


The Ethereum Merge in 2022 shifted the largest smart contract platform and the second-largest crypto by market capitalization to PoS. Since then, users have been able to stake ETH in return for rewards, significantly popularizing staking.


In 2025, the majority of networks use some version of PoS, and many of them allow for staking. Staking has become a fundamental feature of many blockchain ecosystems, providing users with opportunities to earn rewards, participate in network governance, and contribute to the security of the network.


The amount staked ETH has been steadily increasing. Source: CryptoQuant
The amount staked ETH has been steadily increasing. Source: CryptoQuant

Crypto Staking in 2025 with R0AR


The R0AR DeFi ecosystem will offer users access to a comprehensive staking system. The primary objective of R0AR's crypto staking feature will be to combine decentralization, security, and self-custody with usability. Many staking services require users to hand over their digital assets to a third party, therefore undermining self-custody and potentially security. For anyone who firmly believes in Satoshi's vision for crypto, this is a sacrifice that can't be made.


The R0AR crypto staking will be accessible directly through the xCHANGE, which is decentralized and compatible with various extension wallets, including R0AR's in-house R0AR wallet, which will be going live in 2025. This ensures that users retain control of their assets while participating in staking and earning crypto rewards.


The $1R0R token, which is now trading on Uniswap, will be at the heart of the R0AR ecosystem and offers numerous utility features, including staking. $1R0R is an ERC-20 token with a maximum supply of ten billion, and future burn mechanisms are planned to manage its circulating supply.


Users who stake $1R0AR through the R0AR DEX can earn the following staking returns:

Crypto Staking in 2025 with R0AR

Final Thoughts on Crypto Staking in 2025


Crypto staking has been one of the most appealing aspects of cryptocurrency since developers began integrating it into blockchains in the early 2010s. Since the Ethereum Merge shifted the network to PoS, billions of dollars have been shifted into staking protocols across dozens of networks, including Cardano, Cosmos, and Tron.


Crypto staking is likely to experience further adoption as more PoS networks go live and financial institutions increasingly warm to the idea of holding funds in crypto and earning returns for themselves and their clients through staking.


The R0AR staking feature will bring with it a new approach to decentralized crypto staking. Users will be able to earn returns for staking their $1R0AR tokens while maintaining self-custody and security.

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