Bakers Meaning

Baking is the process used by the Tezos blockchain to validate transactions and add new blocks to the network. It is Tezos’ equivalent of mining in proof-of-work systems like Bitcoin, but it operates under a proof-of-stake (PoS) model. Instead of relying on computational power, Tezos relies on participants who lock up (stake) the network’s native token, XTZ, to secure the blockchain.

Participants who take part in this process are known as bakers. To become a baker, an account must hold at least 10,000 XTZ, which constitutes one “roll.” The more rolls a baker controls, the higher their probability of being selected to propose (or “bake”) the next block. This creates an incentive structure where stake size directly influences participation in block production.

Tezos also allows delegation, meaning token holders who do not meet the minimum requirement can delegate their XTZ to a baker. Delegators retain ownership of their funds while allowing the baker to use the delegated stake to increase their chances of baking blocks. In return, bakers typically share a portion of the rewards with delegators.

This mechanism lowers the barrier to participation and decentralizes network security. In addition to bakers, the Tezos protocol includes endorsers. Endorsers verify newly baked blocks and attest that they are valid.

This two-step process strengthens network integrity by separating block proposal and block validation. Bakers and endorsers are rewarded in XTZ for correct participation, while penalties may apply for downtime or malicious behavior. Baking is central to Tezos’ on-chain governance model.

Because bakers participate directly in consensus, they also play a role in protocol upgrades and voting. This tight coupling between consensus, incentives, and governance allows Tezos to evolve without disruptive hard forks. Overall, baking represents an energy-efficient, economically aligned consensus mechanism that secures the Tezos network while enabling broad participation through delegation.