Solana staking allows users to contribute to one of the world’s fastest blockchains while earning automated rewards. By staking SOL, users can support network security and receive passive income in return, making it a practical component of a broader crypto investment strategy.
Staking also enables users to participate in Solana’s consensus process and become active stakeholders in one of the most dynamic blockchain ecosystems of 2025. This guide outlines how to stake Solana using the Phantom wallet and explores additional options to help users optimize their staking experience.
This guide will walk you through staking Solana with the Phantom wallet and introduce other staking options to help you maximize your earnings.
What Is Solana Layer-1 Blockchain?
Solana is a high-performance layer-1 blockchain known for its incredible speed and low fees. It's designed to support decentralized applications (dApps) and cryptocurrencies without compromising scalability. Solana stands out not just for its high scalability, boasting a capability of handling up to 65,000 transactions per second, but also as a flourishing ecosystem hosting over 440 innovative projects.
SOL is Solana's native utility token. It is used for paying transaction fees, validating the network, and SOL staking. Staking SOL lets you participate in the network's consensus and become a stakeholder in one of the busiest and fastest-growing blockchain ecosystems of 2024. Phantom wallet is a popular non-custodial crypto wallet for Solana. It offers an easy way to stake SOL tokens. This guide provides clear instructions for using Phantom for Solana staking, as well as alternative beginner-friendly methods to earn passive income through staking Solana.
The Basics of Staking on Solana Network
Solana leverages a proof-of-stake (PoS) consensus mechanism with a unique twist: the Proof-of-History (PoH) protocol. Imagine a world where transactions don't just line up block by block but are swiftly ordered as they enter the network. That's the genius of PoH, catapulting the Solana blockchain into a high-speed network with low transaction costs.
Delegated Proof-of-Stake: Solana's Masterpiece
Solana uses a delegated proof-of-stake (DPoS) consensus mechanism, which is a modification of the traditional Proof-of-Stake (PoS) system. It involves a community-driven approach where staking SOL tokens is part of a larger voting and delegation process. This process is not only incentivized but also crucial for network security.
When users stake SOL, they contribute to the consensus operation by choosing delegates responsible for block production. The influence of these delegates is proportional to the amount of SOL they have staked. Therefore, the more SOL staked, the more influence they have on transaction validation. This system aims to balance power among validators and ensure that those who are most invested have a significant influence on the network's direction.
Looking ahead, Solana is set to roll out major upgrades in 2025, including Firedancer, a new validator client built by Jump Crypto to improve performance and resilience, and Alpenglow, a consensus improvement designed for sub-second finality. These upgrades aim to enhance validator diversity, reduce latency, and increase throughput, all while maintaining low fees. Such developments could significantly benefit restaking protocols like Solayer by making the underlying infrastructure faster, more scalable, and more secure.
A Self-Regulating Ecosystem of Trust and Responsibility
The Delegated Proof-of-Stake (DPoS) model used by Solana is designed to uphold network integrity. This is achieved not only through the election of validators but also through a system of accountability and community trust. If a delegate proves unreliable, the community has the authority to remove them, thereby maintaining a consistently strong and trustworthy system. However, this level of self-regulation implies that the choice of delegate is important. It is crucial to stake SOL with a dependable validator, as their actions can directly affect the staking process.
Phantom Wallet: An Overview
Phantom stands out as a leading and widely trusted wallet for managing Solana assets, celebrated for its smooth user experience and rich feature set tailored for the Solana blockchain. While it's not officially endorsed or developed by the Solana Foundation, Phantom is a top-tier third-party solution frequently recommended as the go-to wallet for anyone looking to store, stake, swap, or interact with Solana tokens and dApps. It's known for its user-friendly interface, making it an excellent choice for both beginners and experienced users. Phantom allows you to manage your SOL tokens easily, interact with decentralized applications on the Solana blockchain, and, crucially, stake your SOL for passive income.
Why Use Phantom for Staking SOL
Phantom stands out as the preferred choice for staking SOL due to its compatibility, simplicity, and security. The wallet offers a seamless staking process integrated directly into its interface. It also provides versatile options to swap tokens, store NFTs, and interact with Solana's DeFi ecosystem. Phantom also offers a secure environment for your assets, employing advanced security measures to protect your tokens.
Staking Solana on Phantom Wallet
Let's explore a step-by-step guide on staking Solana using Phantom Wallet:
Step 1: Download and Set Up Your Phantom Wallet
The first step in staking Solana with the Phantom wallet is to download and create your Phantom wallet. Begin by visiting the official Phantom website and downloading the Phantom wallet extension for your preferred web browser. Phantom supports Firefox, Chrome, Brave, and Edge browsers. You can also download Phantom as a mobile app on your iOS and Android smartphone from the App Store or Play Store, respectively. Once installed, follow the prompts to create a new wallet, ensuring you securely store the generated seed phrase for future access and recovery purposes.
Step 2: Fund Your Wallet with SOL
The next thing you need to do is deposit SOL to your wallet. You can fund your Phantom wallet by buying Solana on BingX and transferring your tokens to Phantom. Once your Phantom wallet is funded with SOL tokens, select Solana from your list of assets. When you enter the menu, click on Start earning SOL.
Source: BingX
Step 3: Select Your Solana Validator
Review the list of potential validators. For example, you can use the first one called "Phantom Validator". When you have chosen your validator, you should input the amount of SOL you want to stake.
Source: Phantom
Step 4: Review and Confirm Your Transaction
Verify all the data entered before proceeding. Once you click on Confirm, you will need to wait a bit. That's it! You have now staked your SOL on Phantom Wallet. Enjoy your rewards. Tools like Validators.app can help diversify your staked SOL to various validators, protecting your investment from potential issues such as validator downtime, commission increases, or malicious activity. Although this involves multiple transaction fees, Solana's low fees make it a worthwhile trade-off for increased security and risk management.
Source: Phantom
How to Stake Solana as a Validator
Becoming a Solana validator involves maintaining and securing the blockchain while earning an annual reward rate of around 5%. Running a validator node requires substantial technical knowledge and resources but offers the highest potential rewards and impact on the network. Unlike several other blockchains, there is no minimum amount of SOL to stake to become a validator. However, validating blocks can cost you a transaction fee of 1.1 SOL per day, so you can set your staking amount as a validator accordingly.
What Are the Prerequisites for Becoming a Solana Validator?
Here's what you need before getting started as a validator on the Solana network:
1. Technical Expertise: Strong understanding of Linux, Solana protocol, validator setup, and maintenance.
2. Hardware: High-performance server with reliable internet connection and sufficient storage.
3. Solana Tokens: Enough SOL to meet the minimum staking requirement for validator activation (currently around 200 SOL).
Once you have acquired the above, follow this easy step-by-step guide to become a validator on the Solana blockchain:
1. Set Up Your Machine: Install Linux on your server, configure firewall and security settings, and ensure system stability.
2. Download Software: Get the latest Solana validator software and tools. Refer to the official validator documentation from Solana for more information on this.
3. Create Keys and Accounts: Generate keypairs for the validator identity, vote account, and stake account.
4. Configure and Launch: Set up configuration files, allocate stake, and launch the validator process.
5. Monitor and Maintain: Actively monitor your validator's performance, address any issues, and update software regularly.
How to Stake SOL on Solana's Liquid Staking Protocols
Another way to stake Solana is via liquid staking. Liquid staking allows you to earn staking rewards without the technical complexities of running a validator. Instead of locking your SOL for a long time, you will receive liquid staked tokens (LSTs) which you can trade, swap, and use, without impacting liquidity. Here's a step-by-step guide on liquid staking Solana from your Phantom wallet:
1. Set Up Your Solana Wallet: Install and set up your Phantom wallet. You can download the wallet from the app store on your iOS and Android devices. Ensure that it is funded with SOL tokens.
2. Select a Liquid Staking Protocol: Choose a reliable platform like Lido Finance, Marinade Finance, Jito, or StaFi.
3. Connect Your Wallet: Open Phantom and connect it to the liquid staking platform's website.
4. Pick a Staking Pool: Choose a staking pool based on your preferred fees, rewards, and lockup period.
5. Confirm the Transaction: Approve the transaction to deposit your SOL tokens into the chosen pool.
6. Receive Liquid Staked SOL Tokens: You'll receive equivalent liquid staking tokens representing your deposit and accruing rewards.
7. Monitor Your Staked SOL: Track your rewards, adjust your stake, or withdraw your tokens based on the platform's terms.
What Are the Risks and Rewards of Staking SOL Tokens?
As with any other investment, staking also involves risks. If you show signs of malicious behavior (such as generating invalid transactions or censoring certain types of transactions or participants in the network), your stake can be slashed. Slashing is the process of destruction of a part of a validator's stake in the case of unwanted behavior. It's a punitive measure for malicious actions.
Even though labeled as a potential risk, it is actually a safety measure since it poses a reputational risk. Such a validator will get fewer chances of validating again or accruing SOL rewards. However, you might also get punished if you are delegating your SOL stake to another validator and they act maliciously. To avoid this, you should delegate your tokens to reputable validators. To choose a valid and good-natured validator, head to the Solana validators list and select the validator's detail page.
You can easily buy trending tokens from the Solana ecosystem using BingX ChainSpot, a CeDeFi platform that allows you to trade on-chain assets directly from your BingX account without the need for external wallets or bridges. ChainSpot offers a seamless trading experience with AI-powered discovery tools to help you find and invest in popular Solana tokens, all while benefiting from the security features of a centralized exchange.
Conclusion
Staking Solana offers a unique opportunity to earn passive income while actively contributing to one of the fastest-growing blockchain ecosystems in the world. The Phantom wallet, with its user-friendly interface and robust security features, is an ideal entry point for both beginners and experienced crypto users looking to start their staking journey. Staking SOL using the Phantom wallet offers a straightforward way to participate in network security, earn passive rewards, and engage with the broader Solana ecosystem. It can be a useful option for those looking to diversify their crypto activities.