# Staking On Energy Web X

Energy Web X (EWX) operates on a **Proof-of-Stake (PoS)** consensus mechanism, where participants secure the network and earn rewards by staking the native **Energy Web Token ($EWT)**.\
Staking aligns the incentives of token holders with the long-term stability and performance of the network, ensuring that those who contribute resources and maintain uptime are rewarded proportionally.

On EWX, **collators** produce blocks and maintain parachain consensus, while **delegators** support them by staking their $EWT. Rewards are distributed at the end of each **growth period** based on collator performance and the relative amount of stake.

Validators (collators) must meet minimum self-stake and performance requirements to remain active, while delegators can nominate trusted collators to share in their rewards. The network automatically adjusts staking pools and reward allocations to maintain fairness and decentralization.

Staking on EWX not only helps secure the network but also powers the economic engine behind its **Verified Compute** (formerly Worker Node Network) ecosystem, ensuring reliable, transparent, and incentive-aligned participation across Energy Web’s decentralized infrastructure.

Energy Web X supports two methods for token holders to stake their $EWT and contribute to network Security:

1. [**Delegated Staking**](https://app.gitbook.com/o/-MaVNTC0phnhS2JhwPF0/s/nf3YeoQlQerc93GsC2Me/~/changes/184/ewx-ecosystem/staking-on-energy-web-x/delegated-staking-on-energy-web-x) and;
2. [**Liquid Staking**](https://app.gitbook.com/o/-MaVNTC0phnhS2JhwPF0/s/nf3YeoQlQerc93GsC2Me/~/changes/184/ewx-ecosystem/staking-on-energy-web-x/liquid-staking-on-energy-web-x).

With **delegated staking**, users stake their $EWT directly with the Parachain Staking Pallet by selecting one or more collator candidates. The staked tokens are locked and non-transferable, and users earn rewards proportional to their share of each nominated collator’s total stake.

**Liquid staking** allows users to deposit $EWT into a pooled staking system managed by the Liquid Staking Pallet, which stakes the combined funds across a curated set of collators. In return, users receive **stEWT**, a liquid, transferable voucher token whose value increases over time through the exchange rate as staking rewards compound.


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