Solana: Staking and Delegating SOL
A full inflation proposal on Solana’s mainnet beta is scheduled to be released this month. That said, SOL token holders can earn inflationary rewards today by delegating their SOL to a trusted validator like Figment. Learn more by reading below.
Solana is a permissionless, decentralized, secure smart contract blockchain platform proposing to solve the scalability problem – without sharding. The goal of Solana’s architecture is to demonstrate that a set of software algorithms, used in combination with a blockchain, can remove the performance limitations of software. Solana uses Proof-of-History (PoH) – by encoding time into the blockchain.
Solana is organized into Clusters. Clusters are composed of independent computers that work together to verify output from user-submitted programs. The Cluster keeps track of events in time, programmatic interpretations of those events, or the possession of real-world assets. Records of these events are logged onto a ledger that is stored for the lifetime of the Cluster. So long as this ledger is maintained, it can be reproduced, regardless of the organization that launched it. The ledger is organized by the time transitions enter the network rather than by block.
Why Stake with Figment?
EXPERIENCED & TRUSTED
Figment is a venture funded, registered Canadian company based in Toronto. Canada offers stability, rule of law and clear crypto regulation.
Servicing the world’s largest SOL holders.
30+ years of experience successfully scaling internet infrastructure companies.
FEATURES & BENEFITS
Figment Prime & discounts available for large SOL holders. Contact us for more information.
Active participant in the Solana ecosystem.
SECURITY & SAFETY
The world’s most advanced physical IDC + multi-cloud staking infrastructure.
You maintain the custody of your SOL at all times.
Third-party custody solutions are available through our institutional partners. Contact us for more information.
Protected via industry-leading Staking & Delegation agreement.
The SOL Token
Solana’s token, SOL, can be passed to nodes in a Solana Cluster in exchange for running an on-chain program or validating its output. The system also has micropayments that are done with fractions of SOLs. These fractions are called lamports.
Solana also supports SPL tokens, which are an ERC-20 equivalent.
Solana is a delegated Proof of Stake network, which means that anyone who holds SOL tokens can choose to delegate some of their SOL to one or more validators, who process transactions and run the network.
SOL is currently available to trade on exchanges like Binance and FTX.
Solana Supported Wallets
A stake account is a different type of account from a wallet address used to send and receive SOL.
We recommend using SolFlare.com; a community-based web wallet specifically built for Solana.
Solana supports two Mobile wallets, Trust Wallet & Coin98, for sending and receiving SOL. Both are available on iOS and Android, but neither are used for staking.
You can also follow Solana’s instructions command-line interface (CLI) if you are more technically inclined. Solana works with a keystore file or ledger Nano. If you’re going to use a hardware wallet, Solana will only support Chrome and Brave.
Ready to Stake?
Head to https://www.solflare.com, click on “Create a Wallet,” and select “Using Keystone File.”
You will be prompted to create a password to encrypt your Keystore file, and then download the encrypted file to your computer, or more securely, to a hardware wallet. Recommended: a new file back to the site to verify the download was saved correctly.
Don’t lose this file or the password used to encrypt it. Any funds in your wallet will be lost permanently.
When accessing your wallet back onto the site:
That’s it to store and trade SOL.
At the bottom of the page, you can setup your staking account and start delegating:
Enter the amount of SOL you want to use to fund your new stake account. This amount will be withdrawn from your wallet and transferred to the stake account. Don’t transfer your entire wallet balance because your wallet is still used to pay any transaction fees associated with your stake account.
After you submit and sign the transaction, you will see your new stake account appear in the box labeled “Your Staking Accounts.”
First, you have to find a validator node that you want to stake with on https://solanabeach.io.
Figment’s Node Operation ID:
From the Staking dashboard, click “Delegate” on the right side of a stake account. Select the validator you wish to delegate to from the drop-down list – click Delegate. That’s it!
Frequently Asked Questions
How does a validator quality to be in the active set?
Selection is based on amount staked. This stake is subject to a warm-up period, a validation period, and a cool-down period.
How are rewards calculated for validators?
The reward amount will depend on the network’s inflation rate, the global amount of SOL staked, the volume of network fees, and the validator’s commission rate for delegators. Validator rewards are not presently active on mainnet yet. You can read more about the economics in their documentation.
How will delegators receive rewards?
Currently, delegators automatically receive rewards.
What is the role of a replicator?
Replicators provide storage space to store the growing blockchain. Anyone may offer the network storage space and use basic hardware, such as a laptop, to become a replicator. Replicators will earn SOL token rewards proportional to the amount of storage provided.
Can a validator be slashed?
Validators can be slashed. However, validations will not be slashed for downtime. Validators will be slashed for signing illegal transactions and for voting for illegal forks. Slashing isn’t enabled on mainnet yet.