Cryptocurrencies are also extremely volatile investments, where double-digit price swings are common during market crashes. If you’re staking your cryptocurrency in a program that locks you in, you wouldn’t be able to sell during a downturn. The staking platform you choose could offer lucrative annual returns, but if the price of your staked token falls, you could still incur losses. As mentioned already, staking is only possible with cryptocurrencies baby dogecoin linked to blockchains that use the proof-of-stake consensus mechanism. The total block rewards pool per era is a product of the nominal staking rewards rate and the total amount of POLYX staked on node operators. Staking rewards per era are evenly split between node operators based on performance, who take a certain percentage in commission before the remaining block rewards are dispersed to stakers (including the node operator’s stake).