Glossary · Crypto
Proof of stake
Proof of stake is a way for a blockchain to agree on new blocks in which validators lock up their own coins as a deposit, and lose part of it if they cheat.
Also called: PoS, staking, proof-of-stake consensus
Average for the year after the switch, 1,854 ETH, against 14,703 ETH the year before.
Average of the 30 days to November 10, 2026, in ETH.
In plain words
In proof of work you win the right to add a block by burning electricity. Proof of stake replaces the electricity with a deposit: you lock up coins, and the network picks validators to propose and check blocks, roughly in proportion to how much each has locked up.
Honest validators earn new coins and fees. Cheaters, for example a validator that signs two different blocks for the same slot, are slashed: part of their deposit is destroyed and they are thrown out. Your own money is the guarantee that you play fair.
Ethereum switched to proof of stake on September 15, 2022, in the Merge. Validators need far less pay than miners did, so new ether issuance fell 87%: from about 14,703 ETH a day in the year before to 1,854 in the year after.
Example
Running a validator on Ethereum
- You lock 32 ETH, the minimum for one Ethereum validator: about $65,608 at the latest price.
- Every 12 seconds the network picks one validator at random to propose a block, and committees of others vote that it is valid.
- For doing the job you earn new ether and tips; across the network the reward has been a few percent a year.
- Go offline and you lose small amounts. Sign two conflicting blocks and you are slashed: part of the 32 ETH is destroyed and you are forced out, and the penalty grows if many validators cheat at the same time.
Many people stake smaller amounts through pools or exchanges, which run the validators for them and take a cut.
One level deeper
Why should a deposit make a ledger trustworthy? Attacking the chain would take a large share of all staked coins, and the protocol can destroy an attacker’s stake. In proof of work an attacker’s machines survive the attack; in proof of stake the attacker’s money does not.
The trade-offs: proof of stake uses a tiny fraction of the energy, but it pays those who already hold coins, and large staking services can gather a big share of the votes. Critics also point out that it is younger and more complex than proof of work.
Cardano, Solana, Avalanche and many newer blockchains use versions of proof of stake. Since the Merge, Ethereum’s supply has changed by +1.4%: issuance adds to it and burned fees take away.
New ether a day: before and after the Merge
The bold line is new ether issued each day; the thin one is the net change in the supply after burned fees. Issuance stepped down at the Merge in September 2022; the earlier steps are cuts to the miners’ reward in 2017 and 2019. Since August 2021 part of every fee is burned, so in busy months the supply grew more slowly than issuance, or even shrank.
The numbers behind the chart
| Date | New ether a day | Net change in supply a day |
|---|---|---|
| Aug 2015 | 26,616 | 26,616 |
| Dec 2015 | 26,918 | 26,918 |
| Dec 2016 | 31,625 | 31,625 |
| Dec 2017 | 20,525 | 20,525 |
| Dec 2018 | 19,316 | 19,316 |
| Dec 2019 | 11,003 | 11,003 |
| Dec 2020 | 13,972 | 13,982 |
| Dec 2021 | 14,729 | 6,747 |
| Dec 2022 | 1,689 | 157 |
| Dec 2023 | 2,375 | −1,736 |
| Dec 2024 | 2,604 | 1,038 |
| Dec 2025 | 2,661 | 2,627 |
| Nov 2026 | 3,000 | 2,953 |
Why it matters
It lets a blockchain stay secure without industrial mining, cutting its energy use by orders of magnitude.
It changes who earns the new coins: holders who stake, instead of miners who pay for power.
It is now the most common design for new blockchains, so it explains most of crypto beyond bitcoin.
A common mistake
Myth: Staking is like a savings account: the reward is interest and the coins are safe.
In fact: The reward is paid in the same volatile coin, so in dollars you can lose money while “earning”. Staked coins can be locked for a while, and the pool or exchange you stake through can fail or be hacked. It is not a deposit, and nothing insures it.
Questions people ask
How much do you need to stake ether?
32 ETH to run your own validator, about $65,608 at the latest price. Pools and exchanges let you stake any amount, for a fee.
Is proof of stake safer than proof of work?
They defend against attacks in different ways, and each has critics. Proof of work has the longer record; proof of stake can punish an attacker by destroying the stake. Both are only as safe as control over them is spread out.
What was the Merge?
Ethereum’s switch from proof of work to proof of stake on September 15, 2022. The chain kept running without a pause: mining ended and validators took over.
Read more on BigCapital
About the numbers
- The numbers on this page are recalculated from the data every night; the sources are listed at the end of the page.
- New ether per day: Coin Metrics Community Network Data, metric IssTotNtv. License: CC BY-NC 4.0.
- Ether supply: Coin Metrics Community Network Data, metric SplyCur. License: CC BY-NC 4.0.
- Ethereum price: Coin Metrics Community Network Data, metric PriceUSD. License: CC BY-NC 4.0.
- Coin Metrics’ issuance counts new ether before burned fees are subtracted; the net change of the supply includes the burn.
- Crypto data: Coin Metrics Community Network Data, used under the CC BY-NC 4.0 license.
- This page explains a term. It is not investment advice.