What Does Staking Solana Mean? A Simple Guide for Every Level

Have you ever wondered how to grow your SOL holding while actively supporting the Solana network, this guide is for you. In just a few minutes, you will learn what staking is, how it works, and why it is one of the smartest moves you can make with your SOL.

Solana Staking Explained

Solana staking is the act of joining the network’s consensus process by locking up SOL tokens as collateral. Validator nodes play a key role by verifying transactions and creating new blocks, using delegate tokens to generate staking rewards.

That means Solana staking is committing your SOL tokens to support the network’s security and operations by delegating them to a validator. And in return, you earn staking rewards based on the amount you stake and the validator’s performance.

Why does staking exist in proof-of-stake blockchains?

Staking exists in proof-of-stake (PoS) blockchains to secure the network, validate transactions, and maintain decentralization without relying on energy-intensive mining.

Delegation is when a token holder assigns their SOL to a validator without giving up ownership. This allows the delegator to earn rewards while still keeping their tokens in their own wallet. Delegation makes staking accessible to anyone, even without running their own node.

On the other hand, Validators are network participants who run specialized nodes to verify transactions, produce new blocks, and maintain the blockchain’s security. They earn rewards from both their own stake and the SOL delegated to them.

How Solana Staking Works

Solana staking rewards are calculated based on several factors, including:

• The total amount of SOL you stake
• The network’s overall staking rate
• And the current inflation rate

Validators earn rewards for successfully producing blocks and processing transactions. Which are then shared proportionally with their delegators after deducting any commission fees.

The more SOL you stake and the more reliable your chosen validator is, the higher your potential rewards. However, actual returns can vary depending on network conditions and validator efficiency.

For example, you stake 1000 SOL, the current annual staking yield is 7%, and the validator you selected takes a 5% commission on rewards.

So,

• Gross annual rewards = 1000 SOL x 7% = 70 SOL
• Validator commission = 70 SOL x 5% = 3.5 SOL
• Net annual reward = 70 SOL - 3.5 SOL = 66.5 SOL

And at the end of the year, you would earn 66.5 SOL in staking rewards, assuming the rate and performance remain the same. Alternatively, you can use Ivy Oracle’s Staking Calculator.

On Solana, staking runs on a schedule called epochs, which are fixed periods. Typically lasting about 2-3 days, when the network processes and updates validator assignments.

So when you first delegate your SOL, it doesn’t start earning rewards immediately. Instead, it becomes active in the next epoch. The same goes for unstaking, once you request to withdraw your SOL, you must wait until the current epoch ends before your tokens are released.

This system keeps the network organized, ensures rewards are distributed fairly, and makes staking a predictable, ongoing cycle.

Though with some wallets, you just need to pay more transaction fees when you unstake and it will be available immediately.

What happens behind the scenes?

When you delegate SOL on Solana, here’s what happens behind the scenes:

• Delegation Transaction - You send a transaction from your wallet that assigns your SOL tokens to a validator’s stake account. This doesn’t transfer ownership, it just links your tokens to that validator for staking.
• Validator Role - The validator uses the combined stake (their own + delegators) as part of the network’s Proof of Stake mechanism. A higher stake increases their chances of being chosen to produce blocks and validate transactions.
• Proof of History Integration -Solana’s Proof of History timestamps all events, making transaction ordering more efficient. Your delegated stake indirectly helps process thousands of transactions per second securely.
• Reward Generation - When the validator successfully validates blocks, the network issues rewards proportional to the stake delegated to them. These rewards are automatically distributed to all delegators after the validator deducts their commission.
• Slashing Protection - If the validator behaves maliciously or goes offline frequently, they may lose rewards (or in severe cases, a portion of their stake), which can also affect delegators earnings.
• Ongoing Participation - Your SOL remains locked but in your wallet, and it continuously supports the validator’s role in securing the network until you choose to undelegate or unstake.

Benefits of Staking Solana (SOL)

Staking Solana is a win-win situation:

• You earn passive income while
• Helping keep the network decentralized and safe
• And your SOL token never leaves your wallet

The number one benefit of Staking Solana is earning passive rewards. It works like receiving interest on a savings account, but your earnings come from the blockchain.

Just imagine you have a pile of SOL tokens just sitting in your wallet, doing nothing. By staking them, it’s like you have put them to work quietly in the background day and night. And you are earning SOL without you lifting a finger.

And every 2-3 days, you will receive your rewards from the network. It is their way of saying thanks for helping keep things running smoothly. These rewards will show up automatically in your wallet, and you have the option to add them back to your stake (compounding).

Let the cycle keep repeating, turning your SOL into a self-growing asset that works for you while you focus on other things.

While many of us stake their SOL for the rewards, there are some who stake because they support the Solana Network and want to contribute.

Contributing to Solana’s network through staking is like becoming part of the blockchain’s backbone. When you delegate your SOL to a validator, you are lending your stake to strengthen their ability to process transactions, produce blocks, and keep the network running smoothly.

The more people who stake, the more decentralized and secure Solana becomes.

Your participation not only earns you rewards but also directly supports the speed, efficiency, and reliability that make Solana one of the fastest blockchains in the world.

One thing to take note of is that your tokens remain securely under your control. It never leaves your wallet, you just delegate it. It is like renting out your property while still holding the deed, you enjoy the income without giving up possession.

Risks and Considerations of Staking SOL

While we considered Staking Solana as low-risk, it is not entirely risk-free. Here are some risks and considerations that are important to understand before committing your tokens:

• Validator Risk and Slashing
• Lockup Period
• Market Volatility
• Tax Implications

Validator Risk and Slashing

When you delegate your SOL to a validator, their performance directly affects your rewards. If they frequently go offline or fail to follow network rules, you could earn less. In rare cases of malicious activity, slashing can occur.

Slashing means permanently removing a portion a portion of the staked SOL (including delegators tokens). So, it is important to choose a reliable validator with high uptime to minimize this risk.

Lockup Period Explained

Staked SOL is NOT instantly available for withdrawal. When you stake or unstake, your tokens go through a cooldown phase that lasts until the current epoch ends, typically 2-3 days. During this period, your SOL doesn’t earn rewards but remains inaccessible until released.

Market Volatility

While staking increases your SOL balance over time, its market value can fluctuate significantly. A price drop could lower the dollar value of your rewards. On the other hand, a price surge could make it more valuable.

Staking works best with a long-term perspective, where short-term price swings are less concerning.

Tax Implications

In many countries, staking rewards are treated as taxable income when received. And any profit from selling those rewards may be subject to capital gains tax. So, keeping accurate records of your staking activity is essential for compliance.

Different Ways to Stake Solana

There are several ways to stake Solana, each offering different levels of control, convenience, and flexibility. You can stake directly through non-custodial wallets for maximum control, use centralized exchanges for simplicity, or choose liquid staking platforms that let you earn rewards while keeping your SOL tradable.

The best option depends on your priorities. Like security, ease of use, or liquidity.

Staking Solana via Wallets

Staking Solana through non-custodial wallets like Phantom, Solflare, or Backpack gives you full control over your assets while still earning rewards.

Since you hold your private keys, your SOL stays securely in your wallet, reducing the risk of losing funds to a centralized platform failure or hack. You can freely choose and switch validators, allowing you to support trustworthy, high-performance ones that maximize rewards.

These wallets also make staking straightforward, with built-in tools for delegation, tracking rewards, and re-staking earnings. You can do all those features without handing over ownership of your tokens.

Plus, non-custodial staking aligns with the decentralized spirit of blockchain, keeping you in charge of your crypto at all times.

Staking Through Centralized Exchanges

Centralized Exchanges also offer Solana Staking that is simple and beginner-friendly. You don’t need to choose a validator or on-chain transactions. Platforms like Binance, Coinbase, and Kraken handle all the technical details for you.

This convenience is ideal for those who prefer a “set it and forget it” approach, but it comes with trade-offs:

• You don’t hold your private keys, so your SOL is in the custody of the exchange.
• You rely on their security and reliability.

While there are disadvantages, there are also advantages in staking via custodial wallets. Some exchanges offer flexible staking, allowing you to unstake instantly or with shorter lockup periods. Overall, it’s a low-effort option, but it sacrifices some control and decentralization in exchange for ease of use.

Using Liquid Staking Platforms

Liquid staking platforms like Jito and Marinade let you stake SOL while still keeping it liquid and usable in DeFi. Instead of locking your SOL in a traditional stake account, you deposit it into the platform and receive a liquid staking token in return. Such as JitoSOL or mSOL, which represents your staked position.

These tokens automatically accrue staking rewards over time and can be traded, used as collateral, or added to liquidity pools, allowing you to earn additional yields on top of staking rewards.

Running a Validator Node (Advanced)

Running a validator node on Solana means you are taking an active role in securing the network, validating transactions, and producing new blocks, while earning rewards for your contribution.

Unlike staking through a wallet or exchange, this approach requires significant technical knowledge, constant uptime, and powerful hardware to handle Solana’s high transaction throughput.

To run a validator, you will need:

• Powerful server hardware (high CPU, large RAM, fast SSD storage) or a cloud server that meets Solana’s recommended specs.
• A stable, high-speed internet connection to keep your node synced 24/7.
• SOL tokens for staking, either your own or delegated from other to improve your chances of being selected to validate blocks.
• Technical setup skills for installing Solana’s validator software, configuring security measures, and maintaining performance.

The benefits include earning validator rewards (and commissions from delegators), having direct influence on network decentralization, and contributing to Solana’s long-term health.

Step-by-Step: How to Stake Solana Using Phantom Wallet

You can stake SOL using native staking directly in your Phantom Wallet.

Setting Up Your Phantom Wallet

If you haven’t installed the Phantom app, visit https://phantom.app. Click on "Download", and choose either the browser extension (Chrome, Firefox, Edge, Brave) or mobile app (iOS, Android), then install it.

To create a new wallet, click "Create a New Wallet". You can either choose "Continue with email" or "Create a seed phrase wallet".

If you already have a wallet, you can choose "I already have a wallet" and start importing.

But If you choose to create a new wallet, you need to create your password (this will be used to unlock your wallet). And lastly, save the Recovery Phrase > Create Username > Continue.

Getting SOL tokens

You can either "Buy Sol with Cash" (via Debit/Credit Card) or "Transfer Crypto" from an exchange or another wallet. Just click on Receive and copy your Solana wallet address.

Choosing a Validator

Once you have funded it with SOL, open your Phantom Wallet and select your SOL balance. Tap or click on More > Stake SOL.

Then select Native Staking, and choose a validator (like Ivy Oracle) to delegate to.

When choosing a validator, keep in mind that this is the place where you want your money to grow. It is important to choose the right one.

In contrast to other validators, Ivy Oracle does not charge commission fees. This means that 100% of our stake commission goes to the public good.

You can search on ‘Ivy Oracle’ or enter the wallet address below in the validator:

• 5eJQDSbgTZSEmH3zSWDEdAKgjavUUn9BkouCFNLz1x93

Delegating and tracking rewards

Once you have chosen your validator, enter the amount of SOL you want to delegate, and click “Stake”.

You may need to wait a few seconds for your stake account to appear. But it will become active and start earning around 2-3 days (one epoch). Select Your Stake to view its status and track your rewards once it's available.

How to Unstake and Withdraw SOL

You can unstake your SOL at any time since there is no locked-up period. But the epoch-based system of the Solana network may cause some delay, usually 1-3 days. Anyway, you are free to unstake them whenever you want.

To Unstake your SOL:

• Open your Phantom Wallet and select your SOL Balance.
• Select your Stake.
• Choose the validator you want to unstake.
• Then select Unstake.

Your staking account will be deactivated. Afterwards, you will have to manually withdraw the funds back to your wallet.

During Solana’s unstaking cooldown period, here’s what to expect:

• No immediate access to SOL
• No rewards earned
• Funds still in your wallet
• Automatic release

Sometimes the timing of the network matters, if you unstake near the start of an epoch, you’ll wait close to the full 2-3 days. But if you unstake near the end, it could be much shorter.

The cooldown period is essentially a short “holding period” that ensures network stability and prevents sudden large stake withdrawals.

Solana Staking Rewards and APY

Solana staking rewards come from the network’s inflation-based reward system. Which distributes newly issued SOL to validators and their delegators for securing the blockchain.

The Annual Percentage Yield (APY) for staking typically ranges between 6% to 8%, but it is not fixed, it depends on factors like:

• Network inflation rate - around 5-6% and gradually decreasing each year
• Validator performance - like uptime, reliability, and commission rates
• Total SOL staked - the more SOL you staked, the bigger your reward

Rewards are distributed every epoch (about 2-3 days) and are automatically added to your wallet. You do have an option to compound your earnings. In other words, you'll automatically stake what you've earned on your staked.

Common Questions About Solana Staking

Here are some common questions you will encounter about staking Solana.

Is staking Solana safe?

Staking Solana is generally considered safe, but like any investment, it is not risk-free. When you stake, your SOL never leaves your wallet (if using a non-custodial method). So you retain full ownership, reducing the risk of losing funds to hacks or platform failures.

The main risks are tied to validator performance and slashing. There’s also market risk, since the value of SOL can fluctuate, and liquidity risk, because unstaking takes 1-3 days.

Choosing a trusted validator, understanding the lockup period, and staking an amount you are comfortable with can help keep the process as safe as possible.

How often do I get rewards?

On Solana, you receive staking rewards every epoch, which is roughly every 2-3 days. And if you choose to compound your earnings, once rewards are distributed, they are automatically added to your staked balance. That means they start earning interest themselves if you keep them staked.

Can I lose my staked SOL?

Yes, but it is rare. You can lose some of your staked SOL through a process called slashing, which happens if your validator behaves maliciously, double-signs transactions, or severely violates network rules.

While normal downtime only reduces your rewards, serious misconduct can lead to a small portion of your stake being permanently destroyed.

So choose a reliable validator.

What is the minimum SOL required to stake?

There is no strict minimum amount of SOL required to stake, but in practice you will need at least 0.01-0.1 SOL to cover both the stake account rent (a small, refundable deposit of ~0.00228228 SOL) and transaction fees.

That said, some wallets or platforms may set their own higher minimums. For example, Phantom or Solflare let you stake very small amounts, while certain centralized exchanges might require more (often 0.1 SOL or higher) to make rewards worthwhile.

What happens if my validator gets slashed?

If your validator gets slashed on Solana, it means a portion of the SOL staked with them, including both their own stake and any delegated stake is permanently destroyed as a penalty for serious misbehavior.

As a delegator, here’s what that means for you:

• You lose part of your staked SOL
• Your earnings will drop or stop entirely

You can redelegate once the slashing event is over. And the good news is, slashing on Solana is rare.

How to Pick the Right Solana Validator

Making the right choice of selecting a validator is crucial to safely stake your SOL and maximize your rewards.

Here are some things to consider before selecting a validator:

• Performance and Uptime. A validator should have a high level of uptime and performance consistency. It is possible for validations that are frequently offline to miss out on rewards or be slashed (penalized).
• Commission Rate. Check how much percentage the validators charge of your staking rewards as a fee. The lower their commission rate, the better. It means more rewards for you.
• Decentralization Support. Don't always choose the top validators based on stake amount. To help support the network’s decentralization, also delegate to smaller or independent validators. But of course, the trusted ones.

Ivy Oracle meets and exceeds these criteria through its transparency, community contributions, educational efforts, and high operational standards.

From performance to 0% commission rate, to decentralization support and transparency. Not to mention, it scores the maximum rating on Validators.app.

Why Staking Solana Is Worth It for Most Users

Staking Solana is worth it for most users because it delivers a mix of personal financial growth and broader network benefits.

For long-term holders, staking turns idle SOL into a passive income stream, compounding over time without needing to trade or time the market. For the Solana network, every staked token helps strengthen decentralization, improve security, and maintain high performance. Ensuring the blockchain stays fast, reliable, and resistant to attacks.

And because staking can be done through user-friendly wallets, centralized exchanges, or liquid staking platforms, it is highly accessible for beginners. Making it easy for anyone to contribute to Solana’s health while steadily increasing their holdings.

Start Staking SOL With Ivy Oracle

Choosing Ivy Oracle as your Solana validator offers mix of financial, technical, and community-driven benefits:

• High Reliability and Uptime - Ivy Oracle ensures you earn rewards consistently with minimal missed block and its 99.9% uptime.
• Low Risk of Slashing - Our experienced team follows strict security and best practices, greatly reducing the chance of penalties.
• Transparent Operation - Ivy Oracle is open about our performance, fees, and mission, giving you full visibility into where your delegation is going.
• 0% Commission Rate - 100% of our stake commission goes toward public goods. This means we have 0% commission fees, your rewards is all yours.
• Educational Support - We actively publish guides, dashboards, and updates to help delegators understand staking and make informed decisions.
• Alignment with Decentralization - By choosing an independent validator like Ivy Oracle, you help keep the network diverse and resistant to centralization.

Stake with Ivy Oracle:

• Open your Solana Wallet (like Phantom) and tap or click your SOL balance.
• Select More > Stake SOL.
• Then select Native Staking, and search “Ivy Oracle” as your validator. You can also enter the wallet address below:
  • 5eJQDSbgTZSEmH3zSWDEdAKgjavUUn9BkouCFNLz1x93
• Then enter the amount of SOL you want to stake and click “Stake”.
• Review the details and confirm the transaction.

That’s it! And you can do it in less 10 minutes.