Staking Solana (SOL) presents a powerful opportunity to fortify the security of the Solana blockchain while earning rewards for your valuable contribution. This guide will show you how to stack Solana with validators to make impressive returns.
Staking with validators is one of the best ways to keep your crypto safe and within your own custody compared to staking with an exchange chain or other platforms where you may not have complete control of your crypto.
What is Solana Staking?
Solana staking is the process of holding and locking up a number of SOL tokens (the native cryptocurrency of the Solana 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 SOL tokens helps the Solana network's consensus mechanism and help secure the network while earning rewards through additional SOL tokens. These rewards are distributed to validators in proportion to the amount of SOL they have staked and the length of time they have been staking.
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).
- How many SOL tokens you are staking.
- The address to send any rewards to.
Solana Staking Requirements
- There is no set minimum threshold of SOL tokens to operate a validator on Solana's network, except that you'll pay for a vote to participate in the consensus process actively.
- There is no minimum amount that a delegator must delegate. However, on Mainnet Beta, a validator must have less than 3,000,000 SOL in total stake to be eligible for a delegation from the Solana Foundation.
- The minimum staking period for Solana is approximately four to eight days, equivalent to several epochs. After staking your SOL tokens, you will need to wait for this period before earning rewards.
- The maximum staking duration for Solana validation is not specified. Solana's staking page indicates that validators may determine staking durations.
- Solana has no minimum delegation fee rate for staking SOL with validators. Some charge 0% fees to attract more delegators, while others charge up to 100%.
Solana staking rewards are distributed from its inflation, which adheres to a predetermined schedule that commenced at 8% per annum and gradually reduced to 1.5% over the course of the subsequent 10 years.
How to Stake Solana Validator: Step-by-Step Guide
The below guide will provide details on the staking process, delegating staked tokens & how to get node id for SOL holders.
Step 1: Create a wallet
Connect with your wallet account to stake SOL. You can check available wallets on Solana staking page and select one that fits your requirements. In this guide, we use SolFlare.
Step 2: Buy SOL
You will need to purchase SOL. You can buy SOL on various cryptocurrency exchanges such as Binance, Bitfinex, or Kraken. Use our guide on how to buy Solana SOL on the Binance exchange to get started.
Once you have SOL tokens in your wallet, choose "start staking."
Step 3: Choose Solana Validator
Specify your amount and pick a validator to start staking. Then click "Stake."
Earn Staking Rewards
Once you complete all the above steps, you will start earning staking rewards. The rewards are paid out in SOL and are based on the amount of SOL you have delegated and the length of time you have been staking.
Step 4: Unstaking SOL
If you decide to unstake your SOL, you will need to go through a similar process to delegating your SOL. 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 SOL.
Best Solana Validators for Staking
Unsure how to choose the right validator for staking your tokens? Check out our guide on the top five validators for staking avalanche tokens based on their staking rewards, node uptime, and the amount of Solana tokens available to stake.
Our staking validator guides are released on a monthly basis to reflect the changing dynamic nature of validator nodes and to provide the best up-to-date validating node info.
Start staking your avalanche tokens today!