Lock mining involves a process where a user commits, or “locks,” their cryptocurrency for a specific duration to help secure a network. In return for this commitment, participants earn rewards, typically in the form of additional cryptocurrency. This practice incentivizes users to hold their coins rather than sell them.

The locked assets contribute to network stability and security, making it harder for malicious actors to attack the system. By requiring a minimum hold time, lock mining encourages long-term investment over short-term speculation. Different blockchains have their own rules regarding lock mining, including how long coins must be locked and the frequency of rewards. This method also helps regulate the supply of coins, which can stabilize prices and reduce volatility.

Overall, lock mining benefits both the network’s health and the participants, as it aligns their interests with the longevity and stability of the system.