Proof-of-stake is a type of consensus mechanism used for processing transactions and creating new blocks on a blockchain through a validator. It requires users to stake the native blockchain asset to secure the network.

In the Stakehouse Protocol users are staking 32 Ether in the Ethereum blockchain to process transactions and create new blocks while being compensated by staking rewards and network revenue.

Firstly through network rewards which happen when gas fees are charged for processing transactions. Secondly, through staking rewards that work similarly to an interest-producing savings account.

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