In Proof-of-Stake (PoS) networks, participants must provide monetary securities instead of providing computing power in the form of energy as in Proof-of-Work Mining. This process is called staking.

Staking requires that users keep their tokens in a kind of depository account. This entitles them to participate in a share of the total payout that the network generates.

Thus, in order to receive network rewards, users’ tokens must be temporarily “locked up”.