# Glossary


Term	Definition
Active Set	The current group of validators selected by the network to produce blocks and validate transactions.
Auto-compounding	Feature that automatically restakes earned staking rewards to maximize returns.
Baker	Validator in the Tezos network, responsible for producing blocks.
Baking	Process of producing blocks in Tezos, equivalent to validating in other PoS systems.
Delegation Node	A delegation node typically refers to a validator node that allows token holders (delegators) to assign their staking power to it without transferring ownership of their assets. By delegating to a node, users contribute to the network’s security and earn a portion of the staking rewards generated by the node’s validator activities. The delegation node operator manages the validator infrastructure, while delegators maintain control over their tokens.
DPoS (Delegated Proof-of-Stake)	Delegated Proof of Stake (DPoS) is a consensus mechanism used by some blockchains to secure the network and validate transactions. In a DPoS system, token holders vote to elect a small, trusted group of validators (often called delegates or block producers) who are responsible for producing new blocks and maintaining the blockchain. Voting power is typically proportional to the number of tokens a participant holds.
Dual staking	A staking model requiring tokens from two different protocols. For example, Bitcoin and Core dual staking can yield higher rewards.
Epoch/Era	An epoch (or era, depending on the protocol) is a standardized period of time used by blockchain networks to organize key processes such as validator selection, reward distribution, and consensus updates.
Finality Provider	Node that ensures block finality and irreversibility in certain blockchain protocols.
Governance	On-chain or off-chain processes allowing token holders to vote on protocol upgrades and policies.
Max stake amount	Maximum amount of tokens that can be delegated to a validator or delegator.
Min stake amount	Minimum tokens required to participate in staking as a validator or delegator.
NPoS (Nominated Proof-of-Stake)	Nominated Proof-of-Stake (NPoS) is a consensus mechanism where token holders (nominators) select trusted validators to participate in block production and network security. Both nominators and validators share the rewards and potential risks, such as slashing, based on the validator’s performance.
Operator	An individual or organization that maintains validator infrastructure and manages technical operations.
PoS (Proof-of-Stake)	A consensus mechanism used by blockchain networks where participants, called validators, are responsible for proposing and validating new blocks. To participate, validators must lock up (or "stake") a certain amount of cryptocurrency as collateral. PoS systems typically select validators through mechanisms that may consider factors such as the amount staked, randomness, or other protocol-specific criteria. Validators who act maliciously or fail to fulfill their duties can be penalized through slashing, which results in the loss of part or all of their staked tokens.
PPoS (Pure Proof-of-Stake)	Used by Algorand, this system randomly selects block proposers and validators based on their stake, using cryptography to ensure fairness and security. No one can cheat or collude to control the system, as selection happens privately and automatically.
Re-delegating activation time	Time it takes for a delegation to become active and start earning rewards.
Restaking	Restaking is the act of leveraging staked assets to provide security to multiple services simultaneously, increasing capital efficiency but introducing additional risks.
Rewards frequency	How often staking rewards are distributed (e.g., per block, daily, etc.).
Self-bond	Self-bond refers to the portion of tokens that a validator locks up from their own wallet to support their own validator node.
Signer	Validator in the Stacks (STX) network.
Slashing	Penalty mechanism for validators due to downtime or malicious behavior, causing loss of staked tokens.
Stake	The amount of cryptocurrency locked or delegated by a user to support network operations.
Stake activation time	Delay between staking tokens and when they become active and eligible to earn rewards.
Stake lock-up time	Period during which staked assets are locked and cannot be moved, often matching the unbonding period.
Staking Pool	Group of participants who combine tokens to stake collectively and share rewards.
Staking Rewards	Incentives earned for participating in network consensus, usually paid in the native token.
Unbonding time	Cooldown period after unstaking during which tokens remain locked before becoming transferable.
Unstake	The process of withdrawing tokens that were previously staked, often triggering a cooldown period.
Validators	A validator is a node operator responsible for participating in a blockchain network’s consensus mechanism. Validators propose and confirm new blocks, verify transactions, and help secure the network.