What is Staking & Delegation?

What does staking mean?

A stake is the amount of tokens a Node Operator puts aside and dedicates to a network’s active pool to contribute to governance and earn rewards. Staking is the verb used to describe this contribution. As cheqd is a Proof of Stake (PoS) Network, rewards can be earned in direct correlation with the amount of stake a Node Operator contributes.

What is delegation?

Token holders, ‘users’, can delegate their tokens to Node Operators in order to earn rewards and participate in governance. Once a user has delegated tokens to a Node Operator and has tokens added to the active pool, they are known as Participants.
Users can delegate to multiple Node Operators at the same time to essentially diversify their bonded token portfolio.

What does bonded mean?

Bonded tokens are those present in the active pool.
Bonded tokens = staked tokens by Node Operator + delegated tokens by a user.