What Is Solana?
Solana is a high-performance blockchain that aims to provide fast, secure, and scalable decentralized applications and crypto-currencies. Using a unique combination of Proof of History (PoH) and Proof of Stake (PoS) consensus mechanisms, Solana delivers exceptional throughput and low latency, making it ideal for DeFi applications and Web3 projects.
Is Solana Staking Safe?
For the average user, staking SOL tokens is as safe as simply storing them in your wallet. All transactions, whether in a wallet or staked, are processed by smart contracts and the blockchain without human intervention. Therefore, staking offers the same level of reliability and security as keeping tokens in a wallet.
Why You Need to Stake Solana?
Staking is an integral part of blockchains operating on the PoS protocol. Let’s explore the main reasons users stake SOL:
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Supporting the Solana Blockchain: For the stable and secure operation of the Solana blockchain, transaction validation is required, which is only possible with a large and decentralized volume of staked SOL tokens. This is why many users participate in staking their favorite blockchain’s tokens.
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Investments: Users who invest in tokens for the long term choose staking as an additional income multiplier and protection against inflation. Staking is as reliable and safe as storing tokens in an address while providing good returns.
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Exploring New Features: Many users limit themselves to simple token transfers. However, some want to explore all the blockchain’s possibilities, thus experimenting with swaps and staking.
Storing and Staking SOL
You can store SOL tokens and stake them simultaneously. For example, allocate some tokens for long-term investment and stake them, while keeping a small portion for operational purposes, such as paying transaction fees for SOL tokens or NFTs. You decide how many SOL tokens to stake and can also withdraw tokens from staking.
I Want to Learn More About Staking SOL
We have prepared a special tutorial to help you understand SOL staking - Learn more about staking SOL