Cardano Introduces Leased Proof-of-Stake to Enable Smaller Holders to Earn Staking Rewards
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Leased proof-of-stake (LPoS) is a type of proof-of-stake (PoS) system where token holders can lease their coins to validator nodes to help secure the network and earn rewards.
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In LPoS, the more coins leased to a validator node, the greater its chances of being selected to create new blocks and earn fees.
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Leasing coins does not involve transferring ownership - leased coins remain under the leaser's control.
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LPoS allows smaller token holders to participate in staking and earn rewards without running validator nodes themselves.
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Leading blockchains like Waves and Nix use LPoS to validate transactions on their networks.