Introduction
Staking has emerged as one of blockchain technology's most successful use cases, with over $300 billion staked globally**—**$68 billion of which is on Solana. This guide explains Solana staking fundamentals: how it works, participant eligibility, staking types, and step-by-step instructions to stake SOL tokens.
What Is Staking?
Solana uses a Delegated Proof of Stake (DPoS) consensus:
- Validators verify transactions and create blocks.
- Stakers delegate SOL tokens to validators, forming the validator’s "stake."
- Honest/active validators earn SOL rewards; dishonest/inactive ones face penalties.
Why Validators Matter:
✅ Activity ensures network security (33% downtime triggers a halt).
✅ Honesty prevents fraudulent blocks.
👉 Explore Solana’s consensus mechanism
Who Can Stake on Solana?
- Anyone can delegate SOL to validators.
- Running a validator is expensive (~100,000 SOL/$20M to break even).
Solution: Delegation allows stakers to:
- Earn rewards without hardware costs.
- Pay only a validator commission (e.g., 5% on 10 SOL rewards = 0.5 SOL fee).
Types of Staking & Risks
1. Native Staking
- 90% of staked SOL uses this method.
- Pros: Full asset custody; minimal risks.
- Cons: Liquidity locked during 1-3 epoch cooldown (~2–6 days).
2. Liquid Staking
- Receive Liquid Staking Tokens (LSTs) like mSOL.
- Pros: Use LSTs in DeFi (e.g., lending, farming).
Cons:
- Smart contract vulnerabilities.
- Potential LST price drift from SOL.
- Loss risks if LSTs are traded/exploited.
Example: Losing 5 mSOL from a 10 SOL deposit means only 5 SOL can be redeemed.
How to Stake SOL
Prerequisites:
Methods:
Native Staking
- Use wallets (Phantom, Solflare) or exchanges (Kraken).
- Decentralized apps (e.g., Marinade) distribute stakes across validators for network decentralization.
Liquid Staking
- Top platforms: Marinade, Jito, Solblaze.
Marinade’s Dual Approach
- Native Staking: Maximizes security.
- Liquid Staking: Maximizes liquidity.
Features:
- Protected Staking Rewards (PSR): Shields against validator downtime.
- Stake Auction Marketplace (SAM): Validators bid for higher delegations.
FAQs
Q1: Can I unstake SOL anytime?
Yes, but cooldown periods apply (~2–6 days).
Q2: What’s the average staking APY?
~5–7%, varying by validator performance.
Q3: Is liquid staking safer than native?
No—native staking has fewer risks (no smart contract exposure).
Q4: How do I choose a validator?
Look for low commissions and high uptime via Solana Beach.
Conclusion
Staking SOL strengthens Solana’s network while earning rewards. Whether you prefer native security or DeFi flexibility, Marinade offers tailored solutions. Start staking today to grow your SOL holdings!