Stake

Stake is a term with several related meanings in English. In its oldest sense, a stake is a sharp wooden or metal post driven into the ground to mark a location, support a structure, or anchor something such as a fence, a plant, or a tent. Stakes are typically driven into soil or other substrate and can be cut to length; common materials include wood and steel.

In gambling and informal use, a stake is the amount of money or other value risked in a bet. The phrase raising the stakes refers to increasing potential gains or losses, often intensifying the competition or consequences of a decision.

In finance and business, a stake denotes an ownership interest in an asset or company. A person may hold a stake of a certain percentage of shares or equity; the term high stakes describes situations with large potential consequences or value. Historically, to stake a claim meant to assert rights to land by marking it with a stake or boundary.

In technology and blockchain, stake refers to funds locked by participants to participate in consensus or governance. In proof-of-stake systems, validators must lock up a stake of the network’s token; rewards are earned for validating blocks, while misbehavior can lead to penalties, including loss of stake.

Etymology traces stake to Old English staca, meaning a stake, post, or peg, and it is related to other Germanic words such as Dutch stok and German Stock. The multiple senses share a common idea of commitment, boundary, or risk attached to a defined stake.