I came to learn alot about benefit for proof of stake on Ethereum (staking ether); however, I'm still bit unclear about how that would be applied for ERC-20 Tokens built on top of Ethereum protocol.
Lets assume I have built token called HAPI on Ethereum,
1) Who is responsible to validate transactions that happen between HAPI?
2) Is validation done by the Ethereum protocol, thus using Ether to do so?
3) If that is the case, is there such thing as "staking tokens" for HAPI? is there incentive for HAPI holders to stake their tokens?
4) I've read some article where staking token means, when you stake your token and that token is converted into Ether and is available for staking. If this is true, will the price of HAPI fall if alot of people decide to stake HAPI because HAPI is being converted to Ether to stake?