Does Monero use proof of stake?

No. Monero uses proof of work, not proof of stake. You help secure its network by mining—using a computer to do calculations—not by locking up XMR, Monero’s currency.

What Monero uses instead

Proof of work is a way for a cryptocurrency network to agree on which transactions belong in its shared record, called the blockchain. Miners use computing power to compete to add the next block, which is a new group of transactions.

Monero’s mining algorithm—the rules computers follow for that work—is called RandomX. It has been in use since November 30, 2019, when it replaced earlier CryptoNight-based algorithms.

RandomX favors CPUs, the general-purpose processors inside ordinary computers. That makes CPU mining a practical way to participate, although it does not guarantee a profit.

Monero aims for one new block about every two minutes. Its mining difficulty, a measure of how hard it is to find a valid block, adjusts after every block to keep that pace roughly steady.

Why holding XMR is not staking

Proof of stake is a different system. On networks that use it, participants typically lock up coins as a financial commitment to help validate transactions. Those participants are called validators, and they may receive rewards under that network’s rules.

Monero does not work that way:

• Keeping XMR in your wallet does not earn a network staking reward.
• Owning more XMR does not give you more mining power.
• You do not need to buy or lock up XMR before you can mine.
• Leaving your wallet open does not turn it into a staking validator.

You can also run a node, software that checks and shares Monero transactions and blocks. That helps you use and verify the network independently, but running a node alone does not earn mining rewards.

Where Monero’s rewards come from

Monero rewards the miner who finds a valid block with newly created XMR plus transaction fees. If you mine through a pool, a group that combines miners’ work, rewards are shared according to the pool’s rules.

Since around June 2022, Monero has used tail emission: an ongoing base reward of 0.6 XMR per block. This provides a continuing incentive for miners to secure the network.

That reward is not interest paid to everyone who owns XMR. Your wallet balance does not automatically grow when new coins are created. To earn mining rewards, you need to contribute mining work, and your results depend on your computing power, network competition, and costs.

Be careful with “Monero staking” offers

If a website offers “XMR staking,” it is not describing Monero’s own security system. It may be offering lending, a separate investment product, or something misleading.

Before sending funds, ask:

• Who controls your XMR after you deposit it?
• Where does the advertised return come from?
• Can withdrawals be delayed or refused?
• Could you lose your deposit?

Guaranteed high returns are a warning sign. Browser-based mining is not staking either: if a browser service genuinely mines Monero, it uses computing resources rather than earning rewards simply from your holdings.

The bottom line

Monero is a proof-of-work cryptocurrency secured through RandomX mining. You can hold XMR without mining, but holding it alone does not earn staking rewards. Treat any “Monero staking” offer as a separate service with its own risks—not a built-in Monero feature.