Staking is one of the most accessible and secure ways to earn passive income from your crypto holdings. But more than just earning rewards, staking also plays a vital role in maintaining and protecting the blockchain network.

How does staking work?

Imagine the blockchain as a shared notebook where everyone in a digital town records their money transfers. Let’s say Alice wants to send 10 ATOM to Arthur. Here’s how it works:

📝 Alice submits her transaction to a group of validators, who are responsible for verifying and recording network activity..
 
 ⚖️ One validator is randomly selected to propose the next block — a new “page” in the notebook. This block includes Alice’s transaction along with many others. 
 
 👀 The other validators audit the block and double-check that the page is correct — that Alice had enough ATOM, that she didn’t already spend them and that everything was written down properly.
 
 ✅ Once most validators agree that everything looks good, the block is finalized and added to the chain. The page is closed and becomes a permanent part of the notebook.
 
 📚 A fresh block is then opened and the process repeats — ensuring a secure and transparent flow of transactions.

This routine happens every few seconds, making sure that the book is always accurate and everyone agrees on what has happened. Staking is part of a consensus system called Proof of Stake (PoS), which allows blockchain networks to agree on what’s true — such as who owns what — without relying on energy-intensive mining. And that’s how blockchain keeps the system fair and secure — thanks to the validators who write, check and protect the network’s book of records.

But who is a validator ? Validators are responsible for verifying and recording network activity. Validators are specialized operators — individuals or organizations — who run powerful computers to help maintain the network. 

When you stake tokens, they are said to be “bonded” to a validator. This means that your tokens are locked on the blockchain and associated with that validator. You cannot transfer, trade or spend them while they’re bonded. But what is really important: you still own them. They stay in your wallet and under your control. The validator cannot access or take your tokens.

As a token holder, you can delegate your tokens to a validator. This doesn’t give them control over your tokens, but it tells the network, “I trust this validator to do a good job.” The more stake a validator has (their own + what others delegate), the more often they get selected to validate blocks and earn rewards. These rewards are shared with you, the delegator, as a thank-you for your support.

What is the unbonding period?

Staking isn’t completely liquid — you can’t unstake and sell instantly. In Cosmos, when you decide to stop staking, your tokens go through an unbonding period, which usually lasts 21 days. 

During this time:

•   Your tokens are locked and do not earn rewards.

• They are safe, but you can’t move or use them yet.

This delay is a security feature of the protocol. It prevents rapid in-and-out staking and ensures the network remains stable even if market conditions change.

What is restaking? (and why you’ll want to use it)

When you stake your tokens with a validator, you start earning rewards almost right away. But what happens to those rewards? Normally, they just sit there — accumulating in your wallet. To make those rewards work for you, you’d need to manually claim and re-stake them every so often. That means: logging in regularly, claiming rewards, paying gas fees and re-delegating them to your validator. Many users find it inconvenient to manually manage their rewards and often do so only occasionally — missing out on valuable compounding opportunities.
 
That’s where restaking comes in. At High Stakes, a professional blockchain validator, we believe passive income should actually be passive. That’s why we’ve integrated a feature called REStake, which automates the entire compounding process.

Every time you earn rewards, they are automatically claimed and re-staked for you. No manual steps, no logging in, no missed rewards. Over time, your earnings grow exponentially faster, thanks to the power of compounding.
 
Let’s say you’re earning 15% APR from staking. If you just let your rewards sit, you’re not getting the full benefit of that 15%. But if you keep reinvesting them, your rewards start earning rewards too. That’s compound interest — the same principle used in long-term investing. 

Understanding APR in Staking

When it comes to staking, one of the first numbers you’ll notice is the APR — but what does it actually mean? APR stands for Annual Percentage Rate. It tells you how much you can expect to earn in a year just by staking your tokens, before any fees or compounding effects.

If the APR is 18%, and you stake 100 ATOM, you could earn 18 ATOM in rewards over one year — as long as the APR stays stable and you don’t reinvest (restake) your rewards. APR is a helpful way to compare potential returns across different networks. But keep in mind:APR is not fixed: it can go up or down based on network activity, inflation.your actual returns can be higher if you choose to restake rewards and let them compound.At High Stakes, we make it easy to estimate your potential earnings by integrating our interactive Staking Rewards Calculator on our website:

Maybe you’ve also seen the term APY (Annual Percentage Yield) alongside APR. While APR shows the simple annual rate of return without accounting for compounding, APY includes the effect of reinvesting your rewards over time. In other words, APY reflects how much you could earn if you automatically restake your rewards, making it a more accurate measure of your total potential earnings.

The loyalty program by High Stakes

At High Stakes, we don’t just want to be your validator — we want to be your long-term staking partner. That’s why we created IBEX, a first-of-its-kind loyalty program designed to reward our most committed delegators — not just with staking rewards, but with real benefits that grow over time.

IBEX is simple: the more tokens you delegate to High Stakes, the more IBEX points you earn and then, hese points can be redeemed for ATOM instantly (no lock-up period). Once activated on any supported network, your staked amount is automatically tracked to calculate your IBEX allocation. IBEX points are calculated daily, adjusting for delegation changes, exchange rates and the activity of other participants. A quadratic formula ensures fairness so large holders don’t claim an excessive share. 

In addition, every December, we distribute a variable pool of ATOM to participants based on their total points earned and days delegated during the year. The size of this pool depends on our annual performance and market conditions, ensuring that loyal delegators are rewarded.

Your IBEX points are more than just numbers — they unlock real, tangible value, including: 

Boosted staking rewards: higher IBEX levels can give you a staking bonus — meaning you earn more rewards than a regular delegator at the same APR;

Early access to new features: get invited to beta test new tools and integrations before they go public. Whether it’s an app feature, a new dashboard or staking across chains — you’ll be first in line.

To learn more about IBEX, check our article about it.

When it comes to staking your tokens, choosing the right validator really matters. It can affect how much you earn — and how safe your tokens are. Not all validators offer the same quality or benefits. 

1. Uptime and reliability: a good validator needs to stay online and perform consistently. If they go offline or miss their duties, you lose out on rewards. At Highstakes we run top-tier infrastructure to make sure you never miss a block.
 
2. Commission rate: validators take a small fee (called commission) from your rewards. The average rate is typically around 5%. A lower fee means you keep more of your earnings — but be careful: a very low fee doesn’t always mean better results. You want a balance between fair pricing and great service.

3. Community and transparency: it’s important to choose a validator that’s active, visible and trustworthy. 
 
4. Security and slashing protection: slashing is a rare but serious risk. If a validator breaks the rules (for example, by going offline too long or making a mistake), some of your staked tokens could be lost. 🛡️ To protect our delegators, High Stakes offers something special: a slashing insurance. We believe no one should lose tokens because their validator made a mistake. That’s why we’ve introduced free slashing insurance for all High Stakes delegators. If we ever get slashed, we cover 100% of your losses. This protection is available on every Cosmos chain we validate. It’s automatically included, no signup or extra cost.
 
Very few validators offer this kind of protection — and it shows how seriously we take your trust.
 
Want the full details? Read more about our slashing insurance here.

Staking is one of the smartest and easiest ways to earn passive income while supporting the networks you believe in. With Swiss quality security, the IBEX loyalty program and built-in insurance, staking with High Stakes means earning rewards you can trust.
 
👉 Visit highstakes.ch to explore the available protocols and start earning real rewards with your crypto today.