Franking credits in cryptocurrency refer to rewards or benefits that holders receive for participating in a network’s verification or staking process. When users lock up their assets to help secure a network, they can earn rewards in the form of additional tokens. These rewards often come with certain advantages, like tax offsets in some jurisdictions. Holders may receive these credits based on the amount they stake and the duration of their participation. This incentivizes users to contribute to the network’s stability and security. In addition to earning tokens, some networks provide governance rights to stakers, allowing them to participate in decision-making processes. This can enhance user engagement and community involvement, aligning interests among different stakeholders.Overall, franking credits are a way to reward participation and investment in a cryptocurrency ecosystem, promoting both stability and community growth.