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Message: [QUOTE="Jay-Bone, post: 3987340, member: 5014"] I'm no cryptographer but, Proof of Stake (PoS) vs Proof of Work (PoW) builds the blockchain, similar to mining. Basically when you are staking on an exchange, you are allowing your coins to contribute to the network of which rewards are returned. It often takes a large amount of coins to stake, but my guess is the exchange aggregates numerous users, so even small holders can reap benefits. Whales used to buy up large amounts to stake or create masternodes. In general, holding on an exchange isn't even actually having coins. The exchange has a lump sum cold wallet and the actual interactions are just like tokens of that. Its not till you withdraw do they actually pull the coins out of their mass wallet. But maybe the structure is different with staking as you're probably not posting limit trades on the market. TLDR you're renting your coins to be used to build and maintain the blockchain. [/QUOTE]