Once you have staked your SOL, you are contributing to the network's security. In return, you will receive rewards in the form of newly minted SOL. Conversely, if you do not participate in staking, your assets will get diluted over time.
The validator you delegate your tokens to is not able to access your funds at any point in time since you are only delegating your staking rights. At no point in time, we have control over your SOL or your private key.
While not implemented yet, it is intended that validators and their delegators are subject to punishment in case of malpractice. This is referred to as "slashing" and can occur in the wake of two events: the validator being offline for too long or the the validator signing two blocks at the same time (aka "double signing"). Excat parameters and details are yet to be released.
Further risks include: key/asset mismanagement by the enduser resulting in loss of funds; protocol errors; or attacks against the network.
Your annual rewards = block rewards + transaction fees - our commission fee
Use our Reward Calculator above to see how many SOL you can earn through your stake.
Block rewards are paid in newly minted SOL and are subject to the annual inflation rate. Currently, the target Initial Inflation Rate is set to 8%. It will decrease at an annualized rate of 15% until it reaches a stable, long term Inlfation Rate of 1,5%. Please note that this might be subject to change and is dependent on the governance decisions of the network. Transaction fees are market-based participant-to-participant transfers, attached to network interactions as a necessary motivation and compensation for the inclusion and execution of a proposed transaction.
For our service, we charge a commission fee of 8%. We use the fees to fund operating costs and invest back in building tools and software to support the development of the Solana ecosystem.
Rewards are paid out at the beginning of the subsequent epoch (~2,5 days).
Rewards automatically accrue on your Stake account.
You need to stop the delegation, wait for the cool-down period (~2,5 days) to complete, and then withdraw your SOL from your Stake Account to your Wallet Account. In case you want to undelegate only a part of your funds, you first need to “split” the Stake Account that you want to partially undelegate.
You can learn how to do so in our written guides that you find above.
If you want to stake more SOL, you need to create a separate Stake Account and fund it accordingly. Do not send funds to your delegated Stake Account!
Unfortunately we cannot answer this question in a general manner as tax regulation differs among legislations. Nevertheless, we advice you to always track your staking operations so you can provide a detailed history of your staking rewards.