Navigating staking in the digital assets ecosystem: a whitepaper for industry and policymakers
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< BlogStaking is essential to Web3 infrastructure, serving as the core security mechanism for "proof of stake" blockchains. By staking digital assets, participants earn the right to validate transactions and propose new blocks in exchange for rewards.
Despite being widely discussed, staking is often misunderstood due to its technical complexity and rapid evolution without clear regulatory frameworks.
This whitepaper provides a comprehensive guide to staking. It helps industry participants and policymakers understand staking’s role, key models, risks, and benefits. It also reviews the regulatory landscape in the UK, EU, Singapore, and the US, offering recommendations for regulators on how staking should be treated.
Key insights from the staking whitepaper
- The staking ecosystem: Learn about the different staking models, including solo staking and delegated staking (both custodial and non-custodial), liquid staking and restaking. Each model presents unique advantages and risks, especially when it comes to asset control and security.
- Regulatory landscape: With a focus on the regulatory environments in the UK, EU, Singapore, and the US, this whitepaper offers valuable insights into how different jurisdictions are approaching staking. Our recommendations aim to support the development of fair policies that encourage innovation without imposing unnecessary restrictions on the staking infrastructure (which is a technical as opposed to financial service).
- Debunking staking risks: Staking is often perceived as risky, with concerns about asset loss through "slashing" or operational errors. The whitepaper dives into these risks, revealing that slashing incidents are rare and often due to minor operational mistakes, rather than intentional misconduct.
- The future of staking: As PoS networks continue to grow, staking is expected to play an even larger role in securing the Web3 ecosystem. Our whitepaper outlines three critical policy recommendations to ensure that staking is recognized as a technical infrastructure activity, not a financial service, allowing the blockchain industry to thrive.
Get your copy today. Download our staking whitepaper now.
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