Are you an active user of the Sui blockchain, a fan of Sui technology, or simply a long-term holder of the token? Then this article about staking Sui will be useful for you: learn how to not only support and contribute to your favorite project but also grow your Sui tokens.
What Is Sui Blockchain
Sui is a high-performance, decentralized blockchain platform designed for scalability and low-latency. It leverages advanced consensus algorithms to provide fast transaction processing and high throughput, making it suitable for a wide range of applications from DeFi to NFTs. Sui aims to solve common issues faced by traditional blockchains, such as high fees and slow transaction speeds, by employing innovative technologies. Its ecosystem supports developers with robust tools and resources to build and deploy decentralized applications efficiently.
What Is Staking
Staking involves locking up your tokens in a wallet to support the operations of a blockchain network. By doing this, you help secure the network and validate transactions. In return for your participation, you earn rewards in the form of additional tokens. This process not only helps the network remain robust but also allows you to earn passive income on your holdings.
Top 5 Reasons Why You Should Stake SUI
Many users who haven’t fully understood the staking mechanism ignore the role of being a Sui staker for various reasons, such as not having a sufficiently high desired APR income or concerns about asset security. We have compiled the top 5 important points to help you better understand the principle and importance of the Sui staking mechanism.
Security of Your Assets When Staking SUI
There is no difference in terms of security whether your Sui tokens are simply held in your balance or staked. Security during staking is ensured by two key components: your wallet and the Sui blockchain itself. For example, the Gem Wallet does not share your private keys under any circumstances, including during the staking process, making staking as secure as simply holding the asset in your account. The other key component is the Sui blockchain, which manages the entire staking process, reward distribution, and other operational aspects. Validators and other participants can only influence the percentage of your rewards and minor aspects but do not have direct access to your assets or private key. In summary, holding tokens is just as secure as staking SUI.
Participate in Transaction Validation by Staking SUI
The Sui blockchain is built on POS technology, which is fundamentally different from the PoW technology used in classic blockchains like Bitcoin. Simply put, Bitcoin transactions are validated based on the computational power of miners, whereas Sui transactions are validated based on the assets staked. While the processes differ, the end result is the same: the verification and validation of network transactions. By staking SUI, you contribute to the transaction processing on the Sui blockchain.
Contribute to the Security of the Sui Blockchain by Staking SUI
You’ve likely heard of the 51% attack, where a single entity controls more than 50% of the validation power, threatening the network’s security. Decentralization of participants and capital is the only reliable defense against such threats. This is why participating in staking and contributing to the overall stability and security of the Sui blockchain is so important. From this perspective, staking your assets is actually safer than just holding them in a wallet.
Grow Your SUI Tokens by Participating in Staking
The Sui blockchain incentivizes staking by rewarding you with a portion of the transaction fees. Thus, you not only keep your assets with higher security than simply holding them but also grow your capital.
Gain a New Experience
Cryptocurrencies are a relatively new technology, emerging just over 10 years ago with immense potential for growth and development. Join the crypto enthusiasts and explore all the available functions that the blockchain offers, gaining firsthand experience and becoming a trailblazer in this innovative field.
Getting Started With Staking SUI
We have prepared a brief roadmap to help you get started with staking SUI tokens.
Setting Up a Sui Wallet
The first thing you need is the right wallet. Gem Wallet is a self-custody mobile wallet with open-source code that will help you work with Sui and other blockchains. Simply install the wallet, securely save your seed phrase, and you’re ready to receive your first SUI tokens for staking.
How to Acquire SUI Tokens
There are many ways to acquire SUI – you can transfer them from an exchange or ask friends. Often, SUI tokens can also be obtained as rewards in various contests. However, if you value time and convenience, you can buy SUI using a credit card directly within your wallet. This is a safe and quick way to get the necessary amount of tokens in just a few clicks.
How to Stake SUI
Simply select the Stake option in your Gem Wallet and follow the straightforward procedure: choose the number of tokens you want to stake and select a validator. We have prepared a detailed step-by-step guide for you: How to Stake SUI
