Staking Ethereum Is Part Science, Part Game, and Part Tax Puzzle

Ethereum shifted from Proof-of-Work to Proof-of-Stake to reduce energy use and strengthen security. Validators stake 32 ETH to propose and attest blocks, earning rewards but risking penalties or slashing for misconduct. The system relies on slots, epochs, committees, and signature aggregation to achieve consensus. Staking can be done solo or via pools, with rewards and penalties carrying tax implications depending on jurisdiction. Overall, Ethereum’s Proof-of-Stake incentivizes honest behavior, punishes malicious activity, and reshapes participation in blockchain governance.