Understand how staking works on Solana, how to earn rewards by helping secure the network, and what to consider when choosing a validator.
What is staking?
Staking is how you earn rewards by maintaining the security of the Solana network. When you stake your SOL, you contribute to network security and earn about 5-7% annual yield.
How staking works
Staking on Solana uses a system called Proof of Stake:
1. You delegate SOL to the validator of your choice
2. Validators process transactions and secure the network
3. The network creates new SOL as rewards
4. You can earn part of these rewards
Your SOL never leaves your wallet - you are simply authorizing the validator to use it as part of their stake.
Why does the network need staking?
Staking has the following important uses:
Network security
Validators must stake SOL as collateral. If they misbehave, they may lose their staked funds. This economic incentive mechanism ensures validator honesty.
Decentralization
Having numerous validators around the world makes the network highly resilient. No single entity can control transaction processing.
Sustainable rewards
Unlike mining, staking does not require expensive hardware or high energy consumption. Rewards come from network inflation designed to secure the network in the long term.
Start staking
Step 1: Choose your method
Native staking (recommended for beginners)
Stake directly from your wallet
Full control of your SOL
2-3 days unstaking period
Earn 5-7% annual interest
Liquid staking
Receive tokens representing your staked SOL
Use these tokens in other applications
Instant liquidity
Due to fee reasons, rewards are slightly lower
Step 2: Choose a validator
Consider the following factors when choosing:
Uptime: Reliability of being online (target is above 95%)
Commission: Fees charged (usually 5-10%)
Scale: Supporting smaller validators helps achieve decentralization
Performance: How many rewards they have earned in the past
Step 3: Delegate your SOL
1. Open the staking section of your wallet
2. Choose your validator
3. Enter staking amount
4. Confirm the transaction
Throughout the process, your SOL remains under your control.
Understand rewards
How rewards work
Current rate: approximately 5-7% per year
Payments once per period (approximately 2-3 days)
If kept in stake, interest will be automatically compounded.
Rewards come from network inflation
Example calculation
If you stake 1,000 SOL at 6% APY:
Annual rewards: ~60 SOL
Monthly rewards: ~5 SOL
Per period: ~0.5 SOL
Manage your staking
Add more SOL
You can always increase your stake. New SOL begin earning immediately.
Unstaking process
1. Request to cancel staking in the wallet
2. Wait 2-3 days (cooling period)
3. Withdraw your SOL
This delay can protect network stability but means you cannot access your funds immediately.
Switch validators
You can re-delegate to other validators without unstaking. This will help if your validator's performance declines.
Liquid staking options
Liquid staking protocols offer flexibility:
How it works
1. Deposit SOL into the protocol
2. Receive liquid staking tokens (like mSOL or stSOL)
3. Use these tokens while still earning staking rewards
4. Redeem SOL plus rewards at any time
Weighing
Advantages:
Instant liquidity
Use staking value in DeFi
No unstaking period
Disadvantages:
Small protocol fees
Additional smart contract risks
Slightly lower yield
Important considerations
Risks
Validator performance: Poor validator performance means fewer rewards
Opportunity cost: Your SOL is locked during the unstaking period
Currently no slashing: Unlike some networks, Solana currently does not punish validators by slashing their stake
Tax implications
Staking rewards may be considered taxable income in your jurisdiction. Please keep records and consult a tax professional.
Best practices
Start learning with a small amount
Diversification across multiple validators
Regularly monitor validator performance
Consider liquid staking for flexibility
Frequently Asked Questions
Is staking safe?
Your SOL never leaves your wallet. The main risk is selecting poorly performing validators, which affects rewards but not your principal.
Will I lose my staked SOL?
Currently, Solana has no slashing (punishment for validator misconduct). Your main risk is missing rewards due to poor validator performance.
How often are rewards distributed?
Rewards accumulate and automatically compound every period (approximately 2-3 days).
What is the minimum staking amount?
No network minimum, but some wallets may have a smaller minimum (usually 1 SOL or less).$SOL
