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Proof of Stake chains produce and validate new blocks through the process of staking. Staking can be compared with a deposit in a bank, when you get a passive income from your funds. But your funds do not just lie on the staking pool, they actually work and provide network security.

Staking involves validators who have locked tokens on thier contracts, so they can be randomly selected by the protocol at specific intervals to create a block.

After creating new blocks, validators receive a reward, which is evenly distributed among all participants in a given staking pool. This means that at the end of each validating cycle (or epoch), your stake increases, generating you passive income.