Home Passive Income Staking 4 Things You Need to Know About Staking Solana

4 Things You Need to Know About Staking Solana

Staking Solana (SOL) is a great way to generate passive income. We answer four popular questions about staking Solana (SOL).

4 Things You Need to Know About Staking Solana

Staking is a great way to earn passive income with crypto. However, you can only do this with coins that live on PoS chains. Solana’s SOL is such a coin. Staking also helps to secure a network.

In this article, we answer four popular questions about staking Solana. So, let’s have a look.

Why Stake Solana?

Staking Solana helps to secure the network. On top of that, you also earn staking rewards. If you take this a step further, you can also take part in liquid staking. To clarify, now you can earn rewards twice. 

Solana has many validators who bonded their SOL. You can delegate your SOL to such a validator. The current staking ration is 76.39%, as Staking Rewards mentions. The SOL token is inflationary, 8% each year. This decreases by 15% YOY (year on year), until they reach a 1.5% yearly inflation. The current staking rewards is 6.03% APY for validators. See the picture below.

All the inflationary issuance goes to the validators. The more native SOL tokens stakers delegate to a validator, the more voting weight such a validator has. But, be aware that Solana has two different accounts. One is a “normal” account for sending and receiving assets. For staking, you need to create a staking account. Minimal stake is 0.01 SOL. It’s also important that stakers delegate SOL to as many validators as possible. This makes it difficult for one validator to coordinate or fund an attack.

To stake Solana, you need to use a wallet. This is what we’ll discuss next.

Staking Solana

Source: Solana Beach

Best Wallets to Stake Solana?

There are quite a handful of wallets that offer staking for Solana. We will show you the five wallets that we consider to be the best. 

1. Phantom Wallet

This is a Google Chrome toolbar extension and an app. It’s an easy-to-use app that offers a wide range of functions. Phantom Wallet is so easy to use, that it’s easy to stake 100% of your SOL. Which is also the most common mistake users of this wallet make. If you now want to unstake your SOL, you will need to first add more SOL.

Another thing to watch out for is that the wallet lists the biggest validators first. This hinders the network’s decentralization. Phantom also doesn’t show the commission validators charge. However, it’s a safe and popular browser extension. It also works great with your Ledger Nano X. More on this shortly.

2. Solflare Wallet

This is the first Solana wallet ever. Solflare is also web-based and comes with a browser extension. You can also install it on your mobile as an app. This wallet offers great security in combination with a Ledger wallet.

3. Ledger Nano X Hardware Wallet

This is one of the safest crypto wallets currently on the market. It works with Ledger Live on your computer, which makes it easy-to-use. However, when staking SOL on Ledger, we advise to stake through another wallet. For example, the Phantom or Solflare wallets. Ledger only offers one validator, Figment. With other wallets, you have more validator options to delegate your SOL.

4. Math Wallet

A multi-chain wallet which supports over 140 blockchains. You can install Math Wallet as an app, on your desktop, and as an extension. With the Google Chrome extension, it also connects to Ledger.

5. Trust Wallet

Trust Wallet is a popular option with 25+ million users. It’s available as an Android or iOS app. As a desktop version, it only runs on a Mac M1. Currently, there is no Windows PC version available.

Is It Safe to Stake Solana?

Staking SOL is safe. The validator that you delegate your coins to has no control over your coins. In other words, you have the private keys to your coins. All the wallets you can use for staking Solana are non-custodial wallets. Another proof that you oversee your coins. So, a validator cannot steal your coins.

One thing that is common in PoS chains when staking is slashing. With slashing, you can lose your reward, or in the worst case, your staked coins. However, with Solana, slashing isn’t automated. They will look at a malicious actor. If the validator tries to violate safety rules, they slash 100%. On the other hand, during routine operations, it’s 0%.

When you want to stake SOL, chose your validator wisely and carefully. The biggest validator isn’t necessarily the best option. Look also at their staking record and how much commission they take.

How Do You Stake Solana in Trust Wallet?

Staking Solana on your Trust Wallet is easy and straightforward. For starters, you will need SOL in your wallet. You can buy SOL in your Trust Wallet. Now you can go to the staking page and hit the Solana button. See the picture below.

Staking Solana

Source: Twitter

You will now see the Solana staking option. So, select “Stake” and it’s time to pick a validator. Trust Wallet recommends the default option. However, if you have done your homework, pick the one that you prefer. See the picture below.

Trust Wallet
Twitter

Enter the amount of SOL you like to stake and hit “Stake.” Now you only need to confirm this.

Staking Solana
Twitter

That’s it, you staked your SOL on your Trust Wallet. Just keep in mind that the stake starts at the end of an epoch. To clarify, this is a two-day period. It’s the same for when you like to unstake your SOL. You have to wait until the end of the current epoch.

Conclusion

Now you know a lot more about staking Solana (SOL). We answered four common questions for you.

Before you go, the current price of Solana (SOL) is $34.79. That’s 8% up over the last 24 hours and 10% up over the last 30 days. Still, if we look back one year, SOL is 74.4% down. The market cap is $12.2 billion. The total supply is 508 million SOL, out of which 354 million circulate.

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