Staking Solana (SOL) has become one of the most accessible and rewarding ways for token holders to participate in the network’s long-term success. Whether you're new to blockchain or an experienced crypto user, understanding how SOL staking works is essential for maximizing returns while supporting network security and decentralization.
This guide breaks down everything you need to know about staking SOL—from how rewards are generated, to the role of validators, and the growing importance of liquid staking. We’ll also compare Solana’s model with Ethereum’s and explore best practices for safe and profitable staking.
Why Stake SOL?
Staking SOL isn’t just about earning passive income—it actively contributes to the health of the Solana blockchain. By delegating your tokens to a validator, you help secure the network through Solana’s Delegated Proof of Stake (dPoS) consensus mechanism.
Think of staking as a form of digital governance. When you delegate your SOL, you’re essentially voting for a validator you trust to process transactions and maintain network integrity. The more distributed the staked tokens are across reliable validators, the more resilient and decentralized Solana becomes.
Validators with strong uptime, fast block validation, and ethical practices earn more rewards—and so do their delegators. Choosing wisely impacts both your returns and the network's overall robustness.
👉 Discover how staking boosts both your portfolio and network strength.
What Happens When You Stake SOL?
There are two primary ways to stake SOL: native staking and liquid staking. Native staking is currently the most common, accounting for over 90% of all staked SOL.
Native Staking Explained
In native staking, users lock their SOL in a stake account, which is then delegated to a validator’s vote account. You retain full custody of your funds at all times. Most wallets—including Phantom and Backpack—support this process with just a few clicks.
Each stake account has two key authorities:
- Stake Authority: Controls delegation changes.
- Withdraw Authority: Can withdraw funds and change the stake authority (more powerful).
Staking rewards are distributed at the start of each epoch, which lasts approximately two days (432,000 slots). Rewards accumulate automatically, increasing your SOL balance over time.
When you decide to unstake, there’s typically a cooldown period of up to two days, depending on when during the epoch you initiate the action. The same applies when activating a new stake—timing affects how quickly it becomes active.
You can track epoch progress using any Solana block explorer like SolanaFM or Solscan.
Liquid Staking Overview
Liquid staking offers greater flexibility by allowing users to receive Liquid Staking Tokens (LSTs)—such as JitoSOL or mSOL—in exchange for their staked SOL. These tokens represent your share of the stake pool and can be used across DeFi applications.
Unlike native staking, where your balance grows incrementally, LSTs maintain a fixed supply but increase in value relative to SOL as rewards accrue. This enables strategies like using LSTs as collateral for loans while still earning yield.
While only around 7.8% of staked SOL is currently liquid-staked, adoption is accelerating rapidly—growing from 17 million to over 32 million SOL in 2024 alone.
How Do Validators Earn Revenue?
Validators are the backbone of Solana’s consensus layer. They earn income through three main channels:
1. Issuance (Inflation Rewards)
New SOL tokens are minted each epoch according to a predefined inflation schedule. The current rate is 4.9%, decreasing annually by 15% toward a long-term target of 1.5%.
Rewards are distributed based on credits earned—a metric tied to a validator’s voting accuracy and consistency. Validators who miss votes or go offline earn fewer credits, reducing their payout.
Validators may charge a commission (typically 0–10%) on these rewards before distributing the rest to delegators.
2. Priority Fees
Users pay priority fees to expedite their transactions—especially crucial during high-demand events like NFT mints or arbitrage opportunities.
With the upcoming SIMD-96 upgrade, validators will keep 100% of priority fees, significantly boosting their revenue potential.
3. MEV (Maximal Extractable Value) via Jito
MEV allows validators to optimize transaction ordering within blocks. On Solana, Jito facilitates this through off-chain auctions where bots submit transaction bundles with tips.
Over 90% of Solana’s stake runs on Jito-compatible clients. Jito takes a 5% cut, while validators can apply their own MEV commission. These tips now make up 20–30% of total staking rewards, making them a major driver of yield.
👉 Learn how MEV rewards can increase your staking returns.
Where Does APY Come From?
Your Annual Percentage Yield (APY) reflects compounded returns over a year. It’s influenced by:
- Network inflation rate
- Validator performance (uptime, voting speed)
- Share of MEV and priority fee revenue
- Total percentage of SOL staked (~67.7%)
Top validators often achieve APYs between 6% and 8%, with higher yields coming from those capturing MEV effectively.
Tools like StakeWiz allow you to compare validators by APY, commission rate, and reliability metrics.
While low-commission validators may offer better yields, many users still choose platforms like Coinbase or Kraken due to convenience, custody solutions, or regulatory compliance requirements.
Future upgrades like SIMD-123 could let validators share block-building profits directly with stakers—potentially unlocking even higher yields.
Key Players in Solana’s Staking Ecosystem
The Solana validator landscape is diverse, including:
Ecosystem Teams
Projects like Helius, Jupiter, Phantom, and Drift run validators that support their core services—improving RPC reliability or enhancing DeFi infrastructure.
Centralized Exchanges
Coinbase, Kraken, Binance, and Upbit offer one-click staking for their users, prioritizing ease of use over maximum yield.
Institutional Staking Providers
Firms like Figment, Kiln, and Chorus One specialize in enterprise-grade staking across multiple chains.
Independent Validators
Long-standing operators such as Laine, Overclock, and Shinobi contribute technical expertise and community governance.
Private Validators
Over 200 private validators exist with self-delegated stakes, often charging 100% commission and lacking public identities.
Is Staking SOL Safe?
Yes—especially with native staking. You retain full control of your keys and can redelegate at any time if a validator underperforms.
Liquid staking is also considered secure. The underlying stake pool program has undergone nine audits by five reputable firms, minimizing smart contract risk.
However:
- LSTs may temporarily trade below their peg during market stress.
- No slashing currently exists on Solana (though it’s being explored), meaning poor behavior isn’t financially penalized yet.
- Always safeguard your private keys—loss means permanent loss of access.
How Is Staking SOL Different From Staking ETH?
| Feature | Solana (SOL) | Ethereum (ETH) |
|---|---|---|
| Consensus | Native dPoS | Proof-of-Stake |
| Minimum Stake | None | 32 ETH for solo validation |
| Native Staking | Direct delegation | Requires running hardware |
| Liquid Staking Dominance | JitoSOL (~36%) | Lido (stETH) |
| Staking Participation | ~67.7% | ~28% |
| APR/APY | ~6–8% | ~2.9% (via Lido) |
| Slashing | Not implemented | Yes (rarely enforced) |
Solana’s model is more accessible and yields are higher, thanks to MEV integration and broader participation.
Frequently Asked Questions (FAQ)
Q: Can I lose money by staking SOL?
A: In native staking, you cannot lose principal unless you mismanage your keys. However, price volatility affects overall value. With liquid staking, LSTs may temporarily depeg during extreme market conditions.
Q: Do I have to pay taxes on staking rewards?
A: In many jurisdictions, receiving staking rewards is a taxable event. With LSTs, since your wallet balance doesn’t change, tax events may be deferred until sale—consult a tax professional.
Q: How do I choose a good validator?
A: Look for high uptime (>99%), low commission (<10%), active community presence, and transparency in operations. Tools like StakeWiz provide detailed comparisons.
Q: Can I unstake anytime?
A: Yes, but there’s a cooldown period of up to two days depending on the epoch cycle.
Q: Does staking help decentralize Solana?
A: Absolutely. Distributing stake across independent and ecosystem-aligned validators reduces centralization risks.
Q: Will Solana introduce slashing?
A: It’s under discussion. Currently, poor performance only results in lost rewards—not penalties.