Hello everyone! I own 50 Solana, and I would like to stake them on Ledger (Figment). I haven’t staked anything before, and I intend to stake the Solana coins I have for approximately 1 year.
My questions are:
- Can you tell me what to expect over the course of a year of staking?
- Is it worth staking the coins?
- Will I earn more coins over the year, or is the principle different?
Thank you!
Hey there,
For a 50 SOL stake with a 7.5% validator, you would be looking at around 3.75 SOL in staking rewards.
Staking is an integral mechanism of proof of stake networks such as Solana. By delegating your stake to a validator (someone who processes transactions and participates in consensus), you are essentially promoting the decentralization of the network by assigning your voting power that your SOL represents. In doing so, you will receive staking rewards which are paid out from inflation. These staking rewards helps keep your SOL in line with Solana’s inflation schedule which essentially means your SOL holdings won’t be diluted by inflation. Therefore it’s certainly a good idea to be staking your SOL.
However, it’s worth noting Ledger validators currently have 14+ million SOL staked with them across 2 nodes, (Figment & Ledger by Figment) both within the superminority, therefore not great for decentralization. A recommendation here would be to choose another validator/s to help with stake distribution.
Stakewiz.com is a brilliant tool that can be utilized to lookup validators and there performance. Avoid staking with anyone on this list https://stakeview.app/poor.html and ideally outside of the superminority to help with decentralization of the network.
We have written a comprehensive staking guide that explains all about staking, the risks and how to choose a validator which you may find useful. You can check it out here: https://medium.com/@Cogent_Crypto/solana-staking-guide-part-1-6a6a85f07b56