Staking cryptocurrencies can be done in different ways, using different networks, and for different goals. However, they all have one thing in common: Staking tokens will recurrently reward their holders for a proportional share of each of their stakes on the network or application.
This happens because investors trade their liquidity — by locking their tokens under specific rules set by the protocol they are staking at — for the right to directly participate in the system, which can be as validators of a Proof of Stake (PoS) consensus, a protocol’s governance or even by providing liquidity to a decentralized exchange, a lending platform, or to a collateralized asset. Moreover, liquidity has a cost, that is translated into the so-called ‘passive income’.
Interestingly, Artificial Intelligence (AI) text generators such as the ChatGPT, developed by OpenAI, can be valuable allies when gathering complex pieces of information quickly, which can help find financial opportunities or filter top projects among thousands.
In this context, Finbold asked ChatGPT-4 on October 7 to “name thee cryptocurrencies to stake.” Of which, the AI pointed to Ethereum (#ETH ), Tezos (#XTZ ), and Cardano (#ADA ) — as the most “commonly staked by holders to earn rewards”, in the artificial intelligence words.