Key takeaways
Staking Solana allows you to earn passive income through staking rewards while participating in network governance.
There is no minimum requirement for staking Solana, but the practical minimum is around 0.01 SOL.
All you need to start staking Solana is a SOL-compatible wallet.
Staking is considered one of the safer ways to participate in crypto ecosystems.
Solana is a blockchain network known for its fast transaction speeds and extensive ecosystem of decentralized applications (DApps). It also combines the proof-of-stake (PoS) and proof-of-history (PoH) consensus mechanisms, allowing you to stake its native currency, SOL (SOL), to earn rewards.
This Solana staking guide walks you through the Solana staking process and explains why staking could be a smart move, especially if you’ve been wondering how to earn passive income with SOL.
What is Solana staking?
Solana staking consists of locking SOL into a cryptocurrency wallet. The process rewards you in the following ways:
Staking rewards: You earn rewards for staking SOL — a percentage based on how much you’ve staked, Solana’s current inflation rate (which fluctuates and is set to decrease every year), the total amount of SOL staked on the network, and how long you’ve been staking overall.
Governance: Staking gives you a say in governance, allowing you to vote on proposals that shape the Solana network. This approach prioritizes those with the largest investments, assuming they’ll act in the network’s best interest.
Network security: Staking increases security to create a stable investment environment. By staking, you’re directly contributing to Solana’s health and longevity. That said, if a few wallets stake large amounts, one could argue they’re centralizing the network.
If you earn rewards staking SOL, they’re paid out every two days — a period known as an epoch.
When staking SOL, you’re delegating funds to a Solana representative (a validator.) Validators process transactions, produce blocks, and vote on network proposals. It’s essential to choose a validator that aligns with your vision for Solana, as they’ll be voting in your stead, much like an elected official in traditional governments.
Validator votes are stake-weighted. The more stake a validator has, the more weight their vote carries.
Solana validator vs. delegator: By delegating funds to a validator, you become a delegator. The validator’s job is to vote in the network’s best interest. It’s your job to choose reputable validators that keep the network safe.
Did you know? Solana is one of the fastest blockchains in terms of transactions per second (TPS). It currently averages around 1,128 TPS, with a theoretical max of 65,000 TPS.
Staking Solana for beginners
There are a few things to consider as you prepare to stake Solana.
Understanding staking methods
On the surface, staking is quite simple; however, there are actually two staking methods — each affects your SOL liquidity.
Liquid staking: Earn rewards while retaining control of your SOL’s liquidity. When you liquid stake, you receive liquid staking tokens (LSTs) equivalent to the amount of SOL you stake. You can use those LSTs in Solana’s decentralized finance (DeFi) applications as you would if you weren’t staking funds.
Native staking: Native staking is the original method that locks your funds away, allowing you to earn rewards and participate in governance. However, you cannot use your funds without pulling them out via the unstaking process. This process is beginner-friendly but limits what you can do with your SOL.
The difference between the two is flexibility. Native staking is less flexible but easier for beginners, while liquid staking retains your liquidity for use in DeFi and other applications.
Solana staking tax 2025
In the United States, Solana staking rewards are subject to income and capital gains tax.
Income tax: You’re required to pay income tax on the value of SOL at the moment you unstake it. You also pay income tax on staking rewards when you gain the ability to withdraw them.
Capital gains tax: You’re required to pay capital gains tax once you sell or convert that SOL.
How to stake Solana
Now, let’s get into the Solana staking tutorial.
Choose a Solana wallet
First, you need a wallet to store and stake your SOL.
Most Solana wallets have built-in staking capabilities. This guide uses the Phantom Wallet for demonstration purposes.
Download Phantom Wallet from its official website by clicking the “Download” button.
Fund the wallet
Fund Phantom with SOL by either transferring SOL from another wallet or buying it with a debit/credit card via the “Buy” button.
After funding your wallet, it’s time to start staking.
Stake your Solana
Open your token list and click on “Solana.”
JitoSOL will appear in your token list.
Congratulations, you’re successfully staking SOL.
Did you know? Validators who act out of turn or experience significant downtime will have their rewards slashed, also reducing the rewards of those who stake with the validator.
How to unstake Solana
Whether you choose liquid or native staking, here’s how to unstake your funds. You might unstake if:
You want to convert SOL: If you want to swap or sell your SOL, you must unstake the funds first.
You want to stake elsewhere: If another network catches your eye, you’ll have to unstake your Solana funds to transfer them for staking on another network.
Validators act up: If your validator acts outside the network’s best interest, you may want to unstake and delegate to another validator.
Unstake natively staked tokens
To unstake natively staked tokens, click on “Solana” in your token list.
Unstake LSTs
To unstake your LSTs, select them in your token list.
Unstake immediately: Immediate unstaking costs a small fee, based on the amount you are unstaking. You can pay additional fees to prioritize your transaction or tip validators. Finally, you can adjust your slippage tolerance.
Did you know? You can stake Solana with as little as 0.01 SOL, making it one of the most accessible PoS blockchain networks.
Is Solana wallet staking safe?
Staking Solana is relatively safe, but even if you know how Solana staking works, there are risks to be aware of:
Market volatility: Solana is subject to market volatility as much as any other cryptocurrency. The value of your staked SOL can fluctuate based on market conditions.
Validator behavior: Validators can act out of favor with the network and may experience “slashing.” Slashing penalizes the validator’s rewards, which affects your rewards as well. Your initial investment remains safe, however.
Cyberthreats: Blockchain networks are exposed to bad actors 24/7, meaning they can be vulnerable to hacks at any time, putting your funds at risk.
Past downtime: Solana has had various outages over the years, often due to congestion. While this doesn’t necessarily mean your funds are at risk, bad actors could target the network during its weak moments.
So, while staking on Solana offers potential rewards, it’s important to understand that staking always carries risk. As with any investment, there’s a possibility of loss, so it’s crucial to evaluate your risk tolerance and take necessary precautions.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.