> For the complete documentation index, see [llms.txt](https://labelfi-1.gitbook.io/labelfi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://labelfi-1.gitbook.io/labelfi/basics/labelfi-solutions/3.5-labelfi-pos-proof-of-stake.md).

# 3.5 Labelfi PoS (Proof of Stake)

In the Labelfi PoS mechanism, nodes responsible for validating tasks and receiving rewards must stake a certain amount of tokens. This ensures they have a financial interest in maintaining the network’s integrity. Below is the technical breakdown and associated formulas for staking, reward, and penalty mechanisms: