Why Stake & Participate?
What is Token Staking?
Access to Resources
To understand Token Staking for the Token Holder it is useful to step back and see the ESOIO network as a giant computer system with the resources of memory, processing power and bandwidth, just like your own computer, phone or tablet, and look at it from the point of view of an Application Developer. If you are building an application on an EOSIO blockchain network, you will need some quantity and combination of these resources. The fact that the decentralized applications(dApps) need these resources is what makes the token valuable. Despite any speculation that may occur on any given market for an EOSIO-based token, it is this underlying fact that ultimately gives it value.
dApps need to stake tokens to function.
Notice that memory is not accessible through staking; memory is instead purchased outright.
Staking comes into play when dApps want to access processing power and bandwidth. To do so they must stake their tokens, which means they make a special type of transaction with their tokens that tells the network they want to access these resources for their application that is associated with their account.
Access to Voting
The second feature of staking is the ability to vote for Block Producers. Without staking your tokens, you cannot vote on the network. So for everyone holding tokens, whether they are developing applications or not, voting is an important aspect of token staking.
All accounts need to stake tokens to vote.
Voting for Block Producers secures the network by giving Token Holders the opportunity to determine who actually validates transactions, produces blocks of these validated transactions and ultimately defines the state of the network.
Voting is a key element to the core of the EOSIO consensus model know as Delegated Proof of Stake(dPoS) which secures the network and its transactions.
Voting is an important form of participation and helps protect the utility of the network itself as well as the value of tokens that represent that utility.
Token Holders are encouraged to vote either directly or through a Proxy. Learn more about proxying your vote.