Bonding

Bonding is a process similar to staking used by Proof-of-Stake networks. Like staking, it involves the blocking of cryptocurrencies as collateral by network participants to participate in certain activities. In Polkadot’s network, for example, parachains that want to connect to the Relay Chain must bond a set amount of DOT. In the Terra ecosystem, bonding LUNA allows to validate transitions and vote on blockchain governance decisions. In bonding, locked cryptocurrencies function as a security deposit, the moment they are unlocked, the rights attached to them are lost.