Cardano Staking Pool
In Cardano’s PoS system, staking determines a node’s capability to open blocks on the blockchain. A node’s stake is equal to the amount of Ada it holds over the long term. A stake is an interest held by a pool participant, secured with Ada that is pledged. Pledged Ada cannot be used or spent by the holder because it is held as collateral for honest validation behavior. Users with pledged Ada are given rewards in the form of transaction fees. The rewards are distributed according to the amount of Ada a user has staked.
Users join staking pools groups of Ada holders that have pledged their coins and work together to update the ledger, open new blocks, and earn rewards.