A staking pool is a group of token holders who combine their stakes to increase their collective chance of earning block rewards on a Proof of Stake network.
Typically, a staking pool is managed by a pool operator, and the stakeholders who decide to join the pool have to lock their coins in a specific blockchain address or wallet. While some pools require users to stake their coins with a third party, there are many alternatives that allow stakeholders to contribute their staking power while still holding their coins in a personal wallet.
Many modern networks simplify this further. Liquid staking protocols issue a tradable receipt token when a user deposits funds, so the position can still be used elsewhere while the pooled stake earns rewards. On Ethereum, the largest staking pool held roughly 9.5 million ETH, about one-fifth of all staked ETH, in October 2026, illustrating how much stake these pools can concentrate.
Compared to solo staking, a staking pool typically gives smaller individual rewards, because each successful block validation splits the rewards among the many participants of the pool. In addition, most pools charge fees, which reduce the final payout.
On the other hand, staking pools provide more predictable and frequent staking rewards. They also allow stakeholders to earn rewards without having to worry about the technical implementation and maintenance of setting up and running a validating node.
Pooling changes the risk profile compared with staking alone:
Centralization
When a single pool controls a large share of a network's stake, it may gain outsized influence over validation and governance decisions.
Fees
Pool operators typically take a percentage of rewards, which reduces the participant's final payout.
Counterparty and service risk
Users who stake through a third party rely on that operator's infrastructure and honesty. Slashing penalties caused by operator errors are typically shared among participants, and pool tokens can trade below the value of the assets they represent.
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