Solana Staking | Ledger (2024)

FAQs

Is staking Solana worth it? ›

This means that, on average, stakers of Solana are earning about 5.68% if they hold an asset for 365 days. 24 hours ago the reward rate for Solana was 5.68%. 30 days ago, the reward rate for Solana was 5.73%. Today, the staking ratio, or the percentage of eligible tokens currently being staked, is 62.86%.

This can be risky if the price of SOL drops significantly during this time and you are unable to sell. Solana's staking mechanism includes incentives for validators to act honestly and efficiently but also penalties (like slashing) for misbehavior or poor performance.

Solana staking involves delegating SOL tokens to a selected validator while keeping full control over your keys. Validators use these as a bond for securing and validating the Solana blockchain, distributing rewards to you every epoch (about 2 days). The current reward rate for staking on Solana is 7.43 %.

Yes, you can lose your staked Solana through a process called slashing, in which a portion of the stake can be removed and destroyed in response to malicious behaviour. This means there is a risk of losing your tokens if the validator you delegate to acts maliciously.

Cons of crypto staking

There are several drawbacks to cryptocurrency staking: Your assets have limited or no liquidity during the staking lockup period. Staking rewards (as well as staked tokens) can lose value when prices are volatile.

The stake account shows in the wallet interface and on the Explorer that it is “Deactivating”. Once it is “Inactive” or “Not Delegated”, the staked tokens stop earning rewards and can be withdrawn.

— You can stake Solana by operating a blockchain validator node, delegating your stake to another validator, or using a staking pool. — Ledger Live helps you easily stake your Solana tokens via Figment, a trusted validator.

Considering Solana's current fundamentals and ongoing developments, many experts believe it has the potential to be a solid long-term investment.

Per our experts, the best crypto coins to stake include Bitcoin Minetrix (BTCMTX) and TG. Casino (TGC), which may offer remarkable returns. Stablecoins like Tether (USDT) and Ethereum (ETH) can also provide relative security in volatile markets.

Top Solana Wallets for Staking

Exodus, Trust Wallet, Solflare and Phantom Wallet are some of the wallets that allow you to stake Solana. If hardware wallets are your thing, Ledger (of the Nano X and S Plus fame) lets you delegate the Solana you want to stake to the Figment validator node.

Is staking on Phantom safe? ›

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

Staking on Solana

As such, Solana allows individuals or entities—known as “stakers”—to lock up a certain amount of SOL directly with validators as collateral to support its consensus mechanism. This process is referred to as “staking."

Solana Staking Rewards

The current annual yield on Solana is around 5%, minus the validators' commission rate. This rate is gradually decreasing by 15% per year, until reaching a floor of 1.5%. You can stop delegating your SOL from your Solana wallet at any time but you will need to wait 3 days to unlock your assets.

Let's now consider the income that comes to a Solana validator. Validators earn from rewards generated by their stake. They also earn from commissions or fees that they charge on the rewards of those who delegate their tokens to their node.

Daily validator fee: Although Solana does not have a minimum staking requirement, validators must pay a fee of 1.1 SOL per day. Any potential validator should weigh this cost vs how much SOL they have available to stake.

With its high throughput and low transaction costs, Solana provides a compelling platform for NFT activities, positioning it as a strong contender for leading the market in 2024.

Staking with Coinbase is safe. To date, no customer has lost any staked crypto by staking with Coinbase.

Phantom stands out as the preferred choice for staking SOL due to its compatibility, simplicity, and security. The wallet offers a seamless staking process integrated directly into its interface. It also provides versatile options to swap tokens, store NFTs, and interact with Solana's DeFi ecosystem.