How it works
Validators participate in block production and may face penalties for violating protocol rules. Different networks implement stake weighting and finality in different ways.
What to check
Check how validators are selected, how concentrated stake is and whether delegation changes control. Also review unbonding periods and slashing rules.
- Check stake concentration
- Understand delegation
- Read slashing and lock-up rules
Limits and risks
Large holders or staking providers can accumulate influence. Users who delegate also depend on validator behavior and protocol-specific penalty rules.
Primary sources
Bitcoin Developer Reference↗Ethereum developer documentation↗FATF: Virtual Assets↗General information only. Investment products can lose value, and terms, fees and regulation can change.