A staking pool is a group of holders who combine their crypto to take part in StakingStakingLocking up crypto on a proof-of-stake network to help confirm transactions, in return for rewards paid in the same crypto.. An operator runs the technology, operates a ValidatorValidatorA participant on a proof-of-stake network who locks up their own crypto as a stake to create and check blocks in return for rewards. and charges a fee for it. Rewards are shared among the participants according to how much each one contributed.
Why do they exist?
On many networks that use proof of stakeProof of stakeA consensus method where crypto is locked up as a stake for the right to create blocks, and anyone who cheats can lose part of that stake., running a validator takes a fair amount of crypto, technical know-how and a computer that is always on. On Ethereum, for example, you need 32 ETH. A staking pool lets people with smaller amounts take part and earn rewards without running anything themselves.
How they differ
The setup varies from network to network:
- Cardano. Here they are called stake pools. You delegate your ADA to an operator, but the coins never leave your wallet and aren't locked. You can sell or move them at any time, and if the operator performs badly you only miss out on rewards.
- Polkadot. Here they are called nomination pools. You put DOT into a shared pool that nominates validators on everyone's behalf.
- Ethereum. Here your crypto is usually handed to a smart contract or a company. Many services issue a token as proof of your share, which is known as liquid stakingLiquid stakingStaking where you receive a token as a receipt for your stake. The token can be sold or used while the crypto itself stays locked..
What to keep in mind
- Fees. The operator keeps part of the rewards, and fees vary.
- Reliability. If the validator is often offline, or breaks the network's rules, rewards shrink. On some networks part of the stake can be lost as a penalty, known as slashing.
- Custody. On some networks you keep the crypto in your own wallet, while on others you hand it over. Then you have to trust the operator or the code.
- Decentralisation. If a few large operators control a big share of the network, it becomes less decentralised. Some people therefore choose smaller operators.
Everything in Myntkaup Learn is written and regularly reviewed by the Myntkaup editorial team. It is for education and is not investment advice. Editorial policy. Updated 2 November 2026.