Staking is the process of locking SOL to help secure the network. In return, stakers receive a portion of inflationary rewards. It is not risk-free passive income — understand the mechanics first.
Delegated staking
Most holders use delegated staking: you choose a validator and assign your stake to them. The validator runs the hardware; you earn rewards minus their commission fee.
Rewards and inflation
Solana issues new SOL as staking rewards. Annualised percentages fluctuate with total stake and network parameters. Rewards compound if you restake them.
Lock-up and unstaking
Unstaking is not instant. There is a cooldown period (epoch-based) before your SOL becomes liquid again. Plan ahead if you may need funds soon.
Slashing risk
While rare on Solana compared to some networks, slashing remains a theoretical risk if a validator acts maliciously or suffers severe downtime. Research validator track records.
Liquid staking alternatives
Protocols offer liquid staking tokens representing staked SOL. These add smart contract risk and different liquidity profiles. Read protocol documentation before using them.
Tax considerations
Staking rewards may be taxable events in the UK. We do not provide tax advice — consult a qualified accountant.
For a guided explanation, consider an orientation session.