Sui blockchain has emerged as the most hyped layer-1 network amid the surging excitement surrounding layer-2 networks. Staking $SUI is the easiest way to earn rewards. In this guide, we'll explore how to stake SUI with validators and everything you need to know to get started.
What Is SUI Staking?
Staking is part of tradional Proof-of-Stake consensus, which is easily found in some popular protocols such as Cosmos or Tezos. Sui blockchain implements Delegated Proof-of-Stake (DPoS) to determine which validators process transactions.
SUI staking with validators, at its core, has no difference compared to other networks. Users lock up their SUI tokens for a specific period (epoch), in return, they receive additional SUI tokens as rewards to help secure the network.
SUI Validators And Delegators
Validators are tasked with running unique instances of the Sui software on independent machines, working together to fortify the network's security.
Find more information about a blockchain validator node.
On the other hand, SUI delegators entrust their stake and voting power to their chosen validators. Though they do not directly run the Sui software on independent machines, they play a critical role in the network's operation and security.
When you delegate stake to a validator, you specify:
- ID of the node you wish to delegate to.
- Start and stop times of your delegation (which must be while the validator is actively validating).
- Precise amount of SUI you are staking.
SUI Staking Requirements
- Minimum amount that a validator must stake is 30 million SUI.
- Minimum staked amount that a validator must maintain is 20 million SUI.
- No minimum amount that a delegator must delegate. Note that a delegator will need to pay an additional amount of gas fees in SUI tokens.
- No minimum staking period. Delegators have choice to swift validators or withdraw SUI at the end of each epoch.
- No maximum staking duration for validation.
- Minimum delegation fee rate is 2%.
Both validators and delegators can benefit from SUI staking model. More insights into the SUI incentives are available via its official page.
SUI Staking Rewards
Once you stake your SUI tokens, they become part of the validator's stake at the end of the Epoch in which you staked them. An Epoch is a fixed time period during which validators process transactions and earn rewards.
At the end of each Epoch, your validator will earn rewards based on the amount of SUI they have staked, as well as the overall performance of the network during that Epoch. These rewards are separate for each Epoch, and they become available for collecting at the end of each Epoch.
The current SUI staking APY (Annualized Percentage Yield) is around 8.34% on average. It's important to note that the rate could change in the future and vary for each validator.
How To Stake SUI With Validators: A Step-By-Step Guide
Step 1: Install SUI wallet
- Install SUI wallet extension to start staking. Be careful when clicking any links as there are some applications with a close-to-similar name.
- In addition to SUI native wallet, SUI network also supports Ledger wallet.
Here is how after-setup looks like:
Step 2: Buy SUI
- SUI network currently supports buying SUI through Transak or MoonPay.
- Unfortunately, the network is incompatible with popular wallets since SUI uses 'Move' programming language.
- Minimum amount of SUI purchase on Transak is $30 for card payment and Google Pay (at the time of writing), minus fees. MoonPay has the same minimum rate.
Step 3: Choose SUI validators
- Once you have SUI in your wallet, click 'Stake & Earn SUI' on your dashboard.
- You can sort the validator list by name, stake share, or APY based on your priority.
- Click at the validator and choose 'Select Amount.'
- You can find all the metrics of the validator, including staking APY, stake share, total staked, staking rewards start time, staking rewards redeemable time, and gas fees.
Step 4: Delegate SUI
- Enter your stake amount and click 'Stake Now.'
- You will need to wait for the delegation to be confirmed. This process takes around 6 to over 7 hours, detailed in staking rewards start time.
- Once your delegation is confirmed, you will start earning staking rewards. The rewards are paid out in SUI and are based on the amount of tokens you have delegated and the length of time you have been staking.
Step 5: Unstake SUI
If you decide to unstake your SUI token, you will need to go through a similar process to delegating your SUI. You will need to select the validator and then unstake your tokens.
As noted on Sui.io, SUI token holders can unstake their SUI or move their stake to a new validator when each epoch ends.
Best SUI Validators For Staking
Not sure which validators to pick up for staking SUI tokens? Check out our list of the top 10 SUI validators based on APY, commission, voting power, and overall performance.
Our staking validator guides are released monthly to reflect the dynamic nature of validator nodes and provide the best up-to-date validating node info.
Start staking your SUI tokens today!