Staking NEAR (Near Protocol) is a great way to earn passive income while contributing to the network's security. This guide will review the steps to stake NEAR with validators. Staking with validators is one of the best ways to keep your crypto safe and within your own custody compared to staking on crypto exchanges where you may not have full control of your crypto.
What is NEAR staking?
NEAR staking is the process of holding and locking up a number of NEAR tokens (the native cryptocurrency of the Near Protocol network) over a period of time. The goal of staking is to participate in the network Proof-of-Stake consensus mechanism, help secure the network, and earn rewards.
Staking NEAR tokens helps the Near Protocol network's consensus mechanism and helps secure the network while earning rewards through additional NEAR tokens. These rewards are distributed to validators in proportion to the amount of NEAR they have staked and the length of time they have been staking.
Near Protocol Delegators
A delegator is a token holder who delegates cryptocurrencies to a validator or a staking pool on a Proof-of-Stake (PoS) blockchain.
When you delegate stake to a validator, you specify:
- The ID of the node you're delegating to.
- When you want to start/stop delegating stake (must be while the validator is validating).
- The number of NEAR you are staking.
- The address to send any rewards to.
Near Protocol Staking Requirements
- The minimum staking amount required for a validator must be greater than the seat price determined by the protocol. You can check the current seat price for validators on the NEAR Explorer page.
- There is no minimum amount of NEAR to stake for delegators.
- The minimum staking period for validation is 12 hours. However, it's noteworthy that unlocking staked NEAR typically takes up to 52-65 hours (four epochs).
- There is no maximum staking duration for validation.
- The minimum time to stake NEAR tokens for delegation is 36-48 hours.
- There is no maximum amount of time to stake NEAR tokens for delegation. The longer you stake, the more rewards you generate.
- The minimum delegation fee rate is 5%.
The annual percentage rate (APR) that is paid in return for staking NEAR to a validator is currently about 12%.
Get the latest Near Protocol staking APR info with the below link:
Validators | Earn Staking Rewards | Run Near Protocol Node
NEAR holders are incentivized to stake their tokens to secure Near Protocol. Run an Near Protocol node, stake your NEAR, and earn NEAR rewards with minimal hardware requirements.
How to stake NEAR validator: Step-by-Step Guide
The below guide will provide details on the staking process, delegating staked tokens & how to get node id for NEAR holders.
Step 1: NEAR wallet
To get started, you need to create a NEAR wallet. In addition, you can also stake Near Protocol on the hardware wallet Ledger.
Step 2: Buy NEAR
You will need to purchase NEAR. You can buy NEAR on various cryptocurrency exchanges such as Binance, Bitfinex, or Kraken. Use our guide on how to buy NEAR tokens on the Binance exchange to get started.
After having NEAR in your wallet, go to "Staking." Choose "Stake My Tokens."
Step 3: Choose Near Protocol Validator
After purchasing NEAR, you will need to choose a validator to delegate your NEAR tokens.
Validators are responsible for validating transactions on the Near Protocol network and maintaining the network's security. You can choose a validator from the list of validators available on the Near Protocol website or use a Near Protocol wallet like the one provided by Ledger.
What are validators?
What is a blockchain validator node? - Blockchain Guide
A blockchain validator node is a computer that verifies transactions and adds them to the blockchain.
Step 4: Delegate NEAR
Specify the stake amount. Pay attention to the end time of the selected validator. The delegation period cannot be set to end past the end date that the validator has set.
Delegate Your NEAR
Once you have chosen a validator, you can delegate your NEAR tokens to the validator. This process involves sending your NEAR tokens to the validator's staking address. This is done within your Near Protocol wallet by selecting the validator and delegating your tokens.
If the validator you delegate tokens to is sufficiently correct and responsive, you will be rewarded when you are done delegating. Delegators are awarded according to the same function as validators. However, the validator that you delegate to keeps a portion of your reward specified by the validator's delegation fee rate.
Wait for Confirmation After delegating your NEAR, you will need to wait for the delegation to be confirmed. This can take up to 24 hours, depending on your chosen validator.
Earn Staking Rewards
Once your delegation is confirmed, you will earn staking rewards. The rewards are paid out in NEAR and are based on the amount of NEAR you have delegated and the length of time you have been staking.
You can return to the staking dashboard to check your rewards earned, pending release, and available NEAR tokens for withdrawal.
Step 5: Unstaking NEAR
Unstaking Your NEAR If you decide to unstake your NEAR, you will need to go through a similar process to delegating your NEAR. You will need to select the validator and then unstake your tokens. It is important to note that there is a cooldown period after unstaking, during which you cannot withdraw your NEAR.
Best NEAR Validators For Staking
Not sure about choosing the proper validator for staking your tokens? Check out our guide on the top five validators for staking Near Protocol tokens based on their staking rewards, node uptime, and the number of NEAR tokens available to stake.
Our staking validator guides are released monthly to reflect the changing dynamic nature of validator nodes and to provide the best up-to-date validating node info.
Start staking your Near Protocol tokens today!