The proof-of-stake consensus algorithm is a type of consensus algorithm used to keep a blockchain trustworthy. It works by rewarding validators with interest and a percentage of network transaction fees. As the name suggests, the reward is proportional to the amount of ETH staked. The more ETH a user stakes, the higher their return will be.
The proof-of-stake chain is decentralized and immutable. If a validator is dishonest and proposes multiple blocks or submits contradictory attestations, he or she will be penalized. This punishment will range from 1% to 100% of staked ETH.