Decoded Codex · Tech (17): What Is Proof-of-Stake Staking | Does Staking | The Hidden Cost of Yield

Added: 2026-05-28

[00:00:00]Most people think staking is free money.

[00:00:03]It is not. It's a security deposit model where your tokens at risk if the validator messes up.

[00:00:10]>> when a validator gets slashed for double signing or prolonged downtime, a portion of the staked balance gets burned. And if you delegated to that validator, your share gets burned, too. The protocol does not distinguish between the operator's mistake and the delegator's capital. The whole pool gets penalized.

[00:00:27]>> So, the real cost of staking is not just the lockup period. It's the slashing risk you take on for a few percent yield. And most people never look at the validators they delegate to. They see a button that says stake and click.

[00:00:40]>> Full deep dive on the Web3 decoded codex channel. Link in bio.