Solana (SOL) Staking FAQ | P2P Validator | Support Centre (2024)

FAQs

Can I lose my SOL by staking? ›

If they perform poorly or act maliciously, it could result in slashed staking rewards or even loss of staked funds. Staking your SOL usually means that your funds are locked up for a certain period, during which you cannot sell or move your tokens.

Minimum SOL requirements​

There is no strict minimum amount of SOL required to run a validator on Solana. However in order to participate in consensus, a vote account is required which has a rent-exempt reserve of 0.02685864 SOL.

Solana validators earn rewards for their contribution to securing and maintaining the Solana blockchain network. The primary way validators earn rewards is through the inflation mechanism built into the Solana protocol.

Solana staking rewards are paid out to stakers approximately every epoch [2-3 days].

If you click on your stake balance, you will be given the option to unstake. Unstaking also takes an epoch. Once you click Unstake your stake will start deactivating and will become fully inactive after a maximum of 3 days (1 epoch).

Should I stake Solana? Staking Solana can be a great way to generate passive income, especially for investors who are planning to hold SOL for the long-term! However, you should consider the staking platform's credibility and security, as well as the volatility of the cryptocurrency market before getting started.

1 Answer. You need around 1 sol per day for votes. So you need around 5k self stakes sol to be profitable or 50k sol with a 10% fee.

We recommend checking validators. app or StakeView. app to find a ranked list of the options based on current network conditions.

The minimum amount of SOL required for staking is 0.01 SOL, which serves as the minimum reserve. Unlike some blockchains, no minimum amount of SOL is required to become a validator.

Consequently, validators' total annual income ranges from 0.577% to 0.997% of their total staked amount. In the broader financial context of the Solana network, users generate substantial fees amounting to approximately $189M per year, comprising 1.66M SOL in priority fees and 140K SOL in base fees.

What computer do I need for Solana validator? ›

A multi-core processor, preferably with high clock speeds ( core/GHz rate ), is recommended. Storage: Fast and large NVMe storage is essential. It would help if you had the speed and capacity to handle the ledger growth. 2 x 1.92GB NVMe enterprise drives would be perfect for your Solana validator node.

Returns/yield for staked tokens is based on the current inflation rate, total number of SOL staked on the network, and an individual validator's uptime and commission (fee). Solana's initial inflation rate is 8% annually, decreasing by 15% year-over-year, reaching a long-term fixed inflation rate of 1.5% annually.

Solana staking uses periods of times called epochs to delineate time. They are usually 2-3 days long. Your stake only activates and deactivates at the beginning and end of an epoch.

What Risks are Associated with Solana Native Staking? Slashing risk (low): Slashing in Solana involves participants losing their staked SOL if they act maliciously. Currently, there's no slashing implementation on Solana, only some proposals approved - yet to be implemented.

The staking platform you choose could offer lucrative annual returns, but if the price of your staked token falls, you could still incur losses. Many proof of stake networks use “slashing” to punish validators who take improper actions, destroying some of the stake they put up on the network.

Staking Rate Projections

Assuming demand for staking on Ethereum grows linearly as it has for the past two years, the staking rate is expected to exceed 30% in 2024. As explained earlier in this report, a higher staking rate will reduce rewards from issuance.

Phantom stands out as the preferred choice for staking SOL due to its compatibility, simplicity, and security.