With Proof of Stake (PoS) you have to lock a certain amount of tokens in order to guarantee for the validity of transactions and to support the network. At the end of locking periods users feel an incentive to claim the rewards earned. This leads to a higher probability of tokens being sold on the market, which in turns can lead to some selling pressure and dropping market prices.
Protocol embedded staking was invented in reaction to this disadvantage. It is anchored in the base code of the currency’s smart contract and does not require any explicit control or triggering by the user. Since Protocol Embedded Staking allows complete availability of token usage in DeFi products while earning staking rewards at the same time.
Check out the medium article I found on this topic:
Quite innovative approach I think. Anybody read about this somewhere else?
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source https://www.reddit.com/r/btc/comments/k2csus/protocol_embedded_staking_a_new_way_of/
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