Staking Aptos (APT) offers a range of benefits that contribute to the stability and growth of the Aptos ecosystem. In this article, we will explore the top 9 Aptos validators in June 2023 and the benefits of Aptos' delegated staking.
Aptos Staking & Delegation
Staking Aptos (APT) offers a range of benefits that contribute to the stability and growth of the Aptos ecosystem.
Not only can you earn a stable passive income through attractive staking rewards, with an impressive 7.25% APY in APT (minus the validator commission), but you also have the opportunity to support the validators and actively participate in shaping the future of blockchain governance.
Aptos staking was previously focused on owners, node operators, and voters.
An Aptos node operator must perform validating function to reap staking rewards. That means if you want to get incentives through staking, the most common way is to set up and run your node. Learn more about the original staking on the blockchain in Aptos documentation.
Third-party platforms (staking pools or exchanges) are also ideal for users with smaller amounts of cryptocurrency. Since these platforms handle the technical aspects of staking, users can easily stake and earn rewards. The drawback is obviously that this type seems not too decentralized.
Towards the end of April 2023, Aptos Labs introduced Delegated Staking, which allows users to earn passive staking income with no need for node deployment. The new feature aims to bridge the gap to decentralization and make staking Aptos more accessible.
Users with at least 11 APT (approximately $69,3 at the time of writing) can participate in staking. The following infographic by Aptos will give us a brief explanation of Delegated Staking:
Previously, we discussed how to stake Aptos with validators on the Petra wallet. However, today's article will target delegated nodes. Since delegated staking is still in beta, all information is only relevant at publication time. You're encouraged to conduct research for further proceeding.
How to Choose a Validator for Staking Aptos (APT)
Participants can delegate their APT tokens through Aptos Explorer or Aptos' staking partners. Before getting started, here are numerous aspects to consider.
Pool Status: Active and Inactive
A staking pool is considered active once the delegated amount reaches 1 million APT. That explains why there are currently six active pools.
Still, delegators can delegate APT to an inactive pool but only earn rewards once it is active. So why would you like to consider this option?
Think about the early advantage. Delegating to an inactive pool gives you the potential to earn higher rewards in the future once the pool becomes active.
Consider supporting small operators. It can help smaller operators gain traction and grow their stake. It promotes decentralization by diversifying the network's validator set, making it less reliant on a few dominant players.
You believe in Aptos' long-term growth. If the pool successfully reaches the 1 million APT threshold and becomes active, and if the Aptos network gains popularity and value over time, the rewards earned by delegators could potentially increase significantly.
On the other hand, delegating to an inactive pool carries some level of risk. The pool may not reach the required threshold to become active, leaving delegators without any rewards.
Delegation is not a permanent commitment, and you can always choose to redelegate your stake to a different pool or operator if you are not satisfied with the performance or circumstances of the pool.
Annual Percentage Rate (APR)
The Annual Percentage Rate (APR) represents the interest earned on staked Aptos tokens. The network pays out rewards to stakers after each epoch. The APR can change depending on how well validators perform or as determined by the network's rules.
Aptos APR is 7%, minus the validator commission. It's important to note that the current APR is not guaranteed to remain the same in the future.
The staking commission is the portion of the reward distributed to the operator. The minimum rate is currently 5%.
Rewards are the number of APT tokens earned by the staking pool.
Top 9 Aptos Validators - June 2023
Here are the top 9 Aptos validators for June 2023.
Our list of the top 9 Aptos Validators for June 2023 showcases the diverse options available for staking Aptos (APT). By choosing one of these validators, you can enhance the security and consensus of the network while earning staking rewards.
Remember to thoroughly research, assess your staking goals, and carefully consider the specific offerings of each validator before making your decision.