Breaking new ground, Karat Network has introduced an innovative staking mechanism that centers around the validator pool, bringing the world of decentralized finance (DeFi) and SocialFi together. This ingenious method merges the advantages of DeFi—such as financial inclusivity and decentralized control—with the social interactivity and collective endeavors typical of SocialFi.

In this unique arrangement, network participants, referred to as claimers, can stake their tokens under validators. These validators operate network nodes to ensure network security and validate decentralized identifiers (DIDs). Both validators, claimers and stakers can earn rewards, providing a strong incentive for sustained involvement in the ecosystem.

Additionally, validators have the ability to promote their nodes, attracting claimers to stake with them and enhancing community cooperation. This intersection of DeFi and SocialFi in the Karat Network's staking model democratizes token distribution and fosters community engagement, reinforcing the network's community-centric ethos.

Staking mechanism is described by the flow chart below:

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