Introduction
Learn about staking on Avalanche L1s
In many networks, such as Ethereum, the same token is used for both staking and paying for gas. However, in the Avalanche network, staking tokens and gas tokens can be separated, as they fulfill different purposes within the blockchain ecosystem.
Staking Tokens
Staking tokens are used for securing public, permissionless Avalanche L1s through a proof-of-stake (PoS) consensus mechanism. Holders of staking tokens can:
- Run validators
- Participate in the consensus process by staking a certain amount of tokens as collateral
Validators propose and validate new blocks on your L1 blockchain. Staking tokens play a crucial role in:
- Maintaining network security
- Incentivizing validator participation
Private Avalanche L1s
Not all Avalanche L1s are public and permissionless. Many enterprises choose a Proof-of-Authority setup, where the validators are selected by the enterprise. These blockchains do not require a staking token.
