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Variations of POS In the classical POS system such as Ethereum, stakers provide the stake and the necessary computing power to verify and approve blocks of transactions. Jason Hung. In custodial staking, the fact that ownership of the staked assets shifts from the staker to the custodian represents a risk that is not present when a staker stakes through a non-custodial platform or directly on the blockchain. In this first blog post, we explain the basic terms, economics and mechanisms of staking designs. Thus, POS mechanism designers aim for low fees.