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Glossary Term

Staking

Staking is the process of locking up SOL or other tokens on the Solana blockchain to help secure the network and earn rewards. Staking is essential for decentralized network security, passive income generation, and is a foundation of Solana’s Proof of Stake mechanism.

Beginner
DeFi
Crypto Terminology

Staking: what is it?

Staking involves participating in the consensus and security of a Proof of Stake (PoS) blockchain, such as Solana, by locking a specified amount of tokens (e.g., SOL) to a validator. By staking tokens, users contribute to block validation, secure the network, and maintain decentralized ledgers. In return, stakers receive proportional rewards based on the number of tokens staked and the validator’s performance.

There are two main ways to stake on Solana:

  1. Directly delegating SOL to a validator node of your choice.

  2. Using stake pools or liquid staking protocols, which aggregate many users’ tokens across multiple validators and issue liquid tokens (e.g., mSOL, stSOL) that represent staked value and can also be used in DeFi.

Solana’s staking is non-custodial: users remain in control of their assets and can unstake them (subject to a waiting period). Staking also supports decentralization—spreading stake across many validators strengthens Solana’s resistance against attacks or censorship.

How It Works

  • Choose a validator or a stake pool and stake your SOL via a compatible wallet or staking service.

  • Your tokens are locked on-chain and delegated for validating blocks and processing transactions.

  • As validators earn block rewards, these are distributed to delegators, minus the validator’s commission fee.

  • Liquid or pool staking gives users a “liquid staking token,” maintaining both rewards and flexibility within Solana DeFi.

Staking in Solana’s Ecosystem

Staking is fundamental to Solana, powering the network’s security and decentralization. Liquid staking options make staked SOL usable across DeFi, increasing earning potential for users.

Why Is Staking Important?

  • Provides passive rewards just for holding and delegating SOL.

  • Secures and decentralizes Solana—more stake = stronger, more resilient network.

  • Supports advanced use cases (DeFi, DAOs) via liquid staking integration.

  • Reduces circulating supply, helping support long-term tokenomics strength.

🔑 Key points

  • Staking = locking SOL to support network security and earn rewards.

  • Can be done through direct delegation, stake pools, or liquid staking.

  • Non-custodial—users keep control of funds.

  • Integral to earning in Solana DeFi and DAO operations.

Examples

  • 1

    Delegating SOL directly to a reputable validator using Phantom or Solflare wallet.

  • 2

    Joining Marinade or Lido to earn rewards and receive tradable mSOL or stSOL tokens.

  • 3

    Moving liquid staking tokens into DeFi products for additional yield on top of staking rewards.

Common Use Cases

Passive income generation for long-term SOL holders.
DAO treasuries staking large SOL balances to secure income and support decentralization.
Leveraging liquid staking tokens in DeFi activities (lending, farming, collateralization).

Pro Tips

💡

Research validator performance, fees, and decentralization before staking.

💡

Track staking rewards and validator changes regularly through dedicated dashboards.

Frequently Asked Questions

Related Terms

Liquid Staking
Impermanent Loss
AMM (Automated Market Maker)
Liquidity Pool
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