What is Solana?

      Solana is a PoS blockchain that uses a new, efficient consensus algorithm called “Proof-of-History” to achieve scalability and security. Solana’s vision is to enable decentralized applications to scale to millions of users. In contrast to other scaling solutions, Solana aims to scale censorship resistance and increase transaction throughput by an order of magnitude with highly-performant nodes that require a lot of storage and ultra-low latency. The token that powers the Solana network is SOL and it is exclusively used for trading, staking, delegating, paying transaction fees, and governance votes on the network. This tutorial will show you how to stake your SOL tokens on the Solana network. 

      TL;DR

      Prerequisites

      Where to buy Solana

      You can get SOL tokens at a cryptocurrency exchange,  at a DEX, or within select wallets. You should always do your own research when selecting a reputable cryptocurrency exchange. For best security, it is not recommended to leave your tokens on an exchange, but transfer them to your non-custodial or cold/hardware wallet after procuring them.

      Solana wallets

      Solana has a variety of non-custodial wallets for you to choose from. We recommend that you use a hardware wallet such as Ledger otherwise we suggest using Solflare wallet. Compatible wallets include:

      How to connect Solana (SOL) to Solflare Wallet

      When setting up your Solflare wallet, it will automatically create a Solana account for you. In this tutorial, we will use the Solflare browser extension as an example.

      Selecting Solana validators

      Please refer to the FAQ section titled How do I choose Solana validators on this page when selecting Solana validators. Also, you may want to utilize our criteria for verifying providers through Staking Rewards Verified Staking (VSP) Provider Program.

      How Staking Rewards for Solana (SOL) are Generated

      Learn how rewards are generated in the FAQ section titled How are the rewards generated here.

      How to stake Solana (SOL)

      Step 1: Make sure you have a Solana wallet

      Stake your SOL tokens using Ledger, Solflare Wallet, Phantom Wallet amongst others. We will use Solflare Wallet in this staking tutorial.

      As a popular wallet in the Solana ecosystem, Solflare allows you to stake tokens, access blockchain apps, and manage multiple tokens in one convenient place. Simply connect your Ledger to Solflare wallet or use Solflare wallet directly to stake SOL. Install the Solflare browser extension or download the Solflare wallet here and enter your wallet. Deposit your tokens into this wallet before continuing onto step 2.

      Step 2: Go to the Solana staking portal and choose a validator

      After entering your wallet, start staking and select validators. We recommend choosing validators that are verified via the Verified Staking Provider (VSP) Program. You will find the verified validators with a blue tick next to it on the Solana profile page.

      If you are unsure of how to choose a validator, please see the FAQ section named Selecting Solana validators above to help you decide. 

      • Click the START STAKING tab and then the Native SOL Staking tab
      • Click CREATE ACCOUNT
      • If you are unsure of how to choose a validator, go to Solana profile page and select a validator that has a blue tick next to it, copy the delegation address
      • Come back to the staking portal, paste the validators delegation address in the drop-down menu

      Make sure you do NOT stake your full available balance. You MUST leave some room for gas fees, which will vary depending on the network activity on Solana.

      Step 3: Finalize the transaction 

      • Enter the amount of SOL tokens you would like to stake
      • Click STAKE 
      • Press CONFIRM and approve the transaction in your wallet

      Congratulations! You have now staked your SOL tokens and will start earning those juicy staking rewards. 

      Step 4: Track staking portfolio

      • Track your SOL staking rewards on the staking dashboard
      • Monitor governance proposals on Solana network that may impact the staking mechanism
      • Track the current and historical reward rates, validator count, number of unique Solana staking wallets, and staking ratio of the Solana network by visiting the Solana asset page. To make better staking decisions, it’s essential to understand these relevant data points. To learn how these data points could impact your staking rewards, please read more in the FAQ sections named How do I choose Solana validators and How are the rewards generated on the Solana asset page.

      Step 5: How to Unstake SOL

      To unstake your SOL tokens, follow the steps below: 

      • On your staking dashboard, lick on the validator that youve staked to
      • Click on UNDELEGATE
      • Click on CONFIRM and finalize the transaction in your wallet

      Maximizing Staked SOL

      Solana staking rewards are auto-compounded. You will receive rewards every 2-3 days that will automatically be added to and compounded with your staked amount. Now that you have staked your SOL, you have 3 options which can be used to change your position. These options appear on the Solfare staking dashboard. The options are:

      • Stake more
      • Upgrade your stake to liquid staking
      • Unstake and claim rewards

      Stake more 

      You can add to your current delegation by clicking on the validators name and staking more SOL with them.

      Upgrade your stake to liquid staking

      By upgrading your current stake to mSOL staking, you get to unstake instantly with mSOL (a liquid staking derivative token for SOL) and use it to earn potential DeFi yields. 

      • On your staking dashboard, click on Liquid SOL Staking
      • Then you will see a UPGRADE button on the right-hand side of your staked validator information, click on it. 
      • Finally, press CONFIRM to finalize the transaction in your wallet.

      Unstake and claim reward

      The amount of accrued rewards will be available and shown in your dashboard. To receive your staking reward, you need to undelegate your stake by clicking on the UNDELEGATE button on the right-hand side of the staked validator.

      Conclusion

      Staking is essential to Proof-of-Stake blockchains and comes with many benefits for investors and the network:

      • Investors earn yield from token emissions and/or transaction fees.
      • Stakers become eligible for airdrops as many networks prioritize granting these benefits to them.
      • Staking helps to secure the network
      • Staking from multiple participants helps decentralize the network
      • Stakers can participate in governance, as many PoS networks allocate governance rights based on the amount of tokens staked.

      Congratulations! You are now not only getting the most out of your investment with compounded returns. YOU are also (in-)directly contributing to the decentralization, and the network security of Solana and thus contributing to the long-term success of your investment! Solana needs active stakers like you to become successful long-term. 

      Now share the tutorial with your friends so they can get to start staking as well!

      Lastly, dont forget to check out the Solana asset page for more insights into staking SOL, and drop us a message if you found this tutorial useful. Happy staking!

      About The Author

      Daisy Chen

      believes in the power of generalist education and the necessity of having expertise in a few. She has 4 years of TradFi working experience in equity research and venture capital. Daisy aims to be a contrarian thinker, unveiling the truth of crypto assets and building the future in this space.