What kind of staking system does Radix use?

Radix uses a specific kind of staking as part of its Delegated Proof of Stake (DPoS) Sybil protection mechanism. Radix’s DPoS system weights validator consensus votes by the number of XRD staked to each validator node and decides which validators are included in the validator set for each epoch.

Because of this, XRD token holders play a critical role in securing the Radix Public Network.

Stakers i.e. Liquid Stake Unit (LSU) holders, are rewarded for supporting network security through DPoS with newly created XRD tokens over time. These newly created XRD tokens are called network emissions.

In addition, Radix has native liquid staking. While on other networks, such as Ethereum, liquid staking is only provided at the application level by providers such as Lido; on Radix, the Radix Protocol itself issues stakers Liquid Stake Units (LSUs) and represent a proportional claim on the XRD held in each validator component’s staked pool.

As staking is a form of vote that selects which validators participate in consensus and secures the network, selecting which validators to stake to is perhaps the most important role of any XRD token holder.

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