StakePoint
Solana DeFi Glossary
Definitions of key terms used in Solana DeFi, token locking, LP locking, and staking. Published by the StakePoint team.
Proof of Stake (PoS)
A consensus mechanism where validators are selected to produce blocks based on their staked SOL.
Definition
Proof of Stake (PoS) is a blockchain consensus mechanism where the right to produce blocks and earn rewards is proportional to the amount of cryptocurrency staked by validators. Validators with more stake have a higher probability of being selected to produce the next block.
Solana uses a variant of PoS combined with Proof of History for its consensus. SOL holders can delegate their stake to validators to earn a share of block rewards without running validator infrastructure themselves.
PoS is more energy-efficient than Proof of Work (used by Bitcoin) because it does not require intensive computational work to produce blocks. This makes Solana one of the most energy-efficient major blockchains.
StakePoint & Proof of Stake (PoS)
Proof of Stake is the consensus mechanism securing all StakePoint transactions. The token staking on StakePoint is application-level staking — distinct from Solana's native PoS validator staking.
Related Pages
Frequently Asked Questions
What is Proof of Stake on Solana?
Proof of Stake is Solana's consensus mechanism where validators are selected to produce blocks based on their staked SOL. It secures the network efficiently without intensive computation.
How is StakePoint staking different from Solana's native staking?
Solana's native staking involves delegating SOL to validators to secure the network. StakePoint staking is application-level — users stake SPL or Token-2022 tokens in project-created pools to earn token rewards.
Related Terms
Validator
A network participant that processes transactions and maintains the Solana blockchain.
Proof of History (PoH)
Solana's cryptographic clock that timestamps transactions before they enter consensus.
SOL
The native cryptocurrency of the Solana blockchain, used to pay transaction fees and for staking.
Solana Mainnet
The live production blockchain network of Solana where real transactions occur.
Staking Pool
An on-chain contract where token holders deposit tokens to earn rewards.