Native Staking: Solana vs. Other Blockchains
The Solana network has recently emerged as the blockchain of choice.
Known for its speed and low costs, nearly 4 million daily active users in April 2025 rely on Solana (SOL) for trading, transfers, and decentralized finance. Stakers also use native and liquid staking to invest in Solana and earn long-term rewards.
But how does native SOL staking compare to other blockchains like Ethereum, and what advantages does it offer?
In this blog, we’ll explore the following topics:
Native staking is directly staking SOL on the Solana network through its built-in consensus mechanism. Solana has a Delegated Proof-of-Stake (DPoS) consensus mechanism.
Here’s a breakdown of terms for SOL staking:
For Solflare, click the Staking tab from the wallet interface, then click Stake. This will automatically delegate your tokens to the Solflare validator. Your staked assets will then earn rewards.
Note that native staking is distinct from third-party staking options such as liquid staking, where users receive liquid staking tokens instead of native SOL tokens.
When you stake SOL through these services, you receive a liquid staking token (LST) representing your staked SOL. In the case of Jito, you receive JitoSOL. This token continues to earn rewards and can be used in decentralized finance (DeFi) protocols.
According to Token Terminal, the Solana blockchain is the most adopted network. It has four times as many users as the next blockchain. It has earned the reputation as the “Ethereum Killer” for its ability to process fast transactions at extremely low fees.
This efficiency also means that staking rewards can be distributed frequently and reliably without high transaction costs.
Quick Google searches on the validator can reveal much information. Free sites such as Solana Compass also provide a score.
The SOL staking yield incentivizes validators and token holders to engage in network security. Being a validator costs money. This staking yield is the primary cause of network inflation, with additional SOL tokens printed over time.
The initial inflation rate is 8%, while the target long-term inflation rate is 1.5%. Knowing how this drives down staking yields is essential for a long-term investor.
- What is Solana native staking
- How Solana staking differs from other blockchains
- The advantages of staking SOL and
- The opportunities for maximizing rewards on Solana.
How Does Native Staking Solana Work?
Native staking is directly staking SOL on the Solana network through its built-in consensus mechanism. Solana has a Delegated Proof-of-Stake (DPoS) consensus mechanism.
Here’s a breakdown of terms for SOL staking:
- Delegation: SOL holders select a validator node and delegate their tokens.
- Validation: Validators process transactions, contribute to network security, and produce new blocks.
- Rewards: Validators and delegators earn rewards in native SOL tokens.
- Unbonding: When users decide to unstake their tokens, they must wait two to four days before accessing their assets.
For Solflare, click the Staking tab from the wallet interface, then click Stake. This will automatically delegate your tokens to the Solflare validator. Your staked assets will then earn rewards.
Note that native staking is distinct from third-party staking options such as liquid staking, where users receive liquid staking tokens instead of native SOL tokens.
Difference Between Solana Native and Liquid Staking
There are two main options for staking SOL: native and liquid. Both methods allow you to earn rewards for helping secure the Solana network, but differ in flexibility, usability, and risk.Native Staking SOL
Native staking involves delegating your SOL directly to a validator, such as Solflare. Your SOL remains in your wallet but is locked and inactive until you manually unstake it.- Simple and secure: Ideal for long-term holders who want to earn passive income with minimal risk.
- Locked tokens: Your SOL cannot be used or transferred while staked.
- Earn standard APY: You receive regular staking rewards, generally around 7–8%, depending on the validator.
Liquid Staking
Liquid staking is offered by platforms such as Jito.
When you stake SOL through these services, you receive a liquid staking token (LST) representing your staked SOL. In the case of Jito, you receive JitoSOL. This token continues to earn rewards and can be used in decentralized finance (DeFi) protocols.
- Flexible: Your staked SOL remains productive while your liquid staking token can be traded or used across DeFi platforms.
- Additional yield opportunities: Besides staking rewards, you can earn extra returns by lending or farming with your liquid staking tokens.
- Higher risk: Liquid staking introduces additional risk through smart contracts and third-party protocols.
How to Earn Additional Yield with Liquid Staking
Let’s pretend that you’ve used Jito and received JitoSOL. You can head to Kamino Finance and deposit the tokens into their lending platform. You can earn an additional 0.02% on your tokens.
Solana Native Staking vs. Other Blockchains
Proof-of-Stake (Pos) and Delegated-Proof-of-Stake (DPoS) are the primary staking consensus mechanisms. Other consensus mechanisms have been adopted, such as Nominated Proof-of-Stake (for Polkadot) and Ignite (for Cosmos); however, these are mainly variants of the two primary staking mechanisms. As such, they will be discussed as part of PoS or DPoS.Delegated-Proof-of-Stake (DPoS)
Solana, Polkadot, and Cosmos operate under the DPoS consensus mechanism. Holders delegate their tokens to validators and receive staking rewards in the form of the native networks’ tokens. This delegation process is critical because operating your standalone validator can cost hundreds of thousands. This high financial cost runs in addition to the technical complexity of creating a validator. Most retail SOL token holders have neither the economic nor technical resources to participate in the staking process.Proof-of-Stake (PoS)
Ethereum is one of the few blockchains that supports PoS and solo staking, also known as traditional staking. Solo stakers set up their validator by assembling hardware and software and locking 32 ETH directly on Ethereum. While the technical barriers are still high, the financial costs are relatively lower than those of other blockchains. As of writing, 32 ETH costs less than USD 60,000.Pros of Staking on Solana
Staking on Solana has several advantages that make it appealing to investors. It’s a great long-term bet on the blockchain industry, reducing the risks of the SOL token going to zero. Solana staking is also accessible to virtually anyone. Here are a few reasons you should stake on Solana:Wide-Adoption
According to Token Terminal, the Solana blockchain is the most adopted network. It has four times as many users as the next blockchain. It has earned the reputation as the “Ethereum Killer” for its ability to process fast transactions at extremely low fees.
This efficiency also means that staking rewards can be distributed frequently and reliably without high transaction costs.
Low Entry Barrier
Unlike Ethereum, which requires 32 ETH to become a validator, Solana’s DPoS system allows anyone to delegate their tokens with no minimum required. This makes staking accessible to smaller investors. From a technical standpoint, anyone can stake their Solana crypto wallet. There is no need to understand coding or hardware setup.Short Unbonding Period
Solana is a strong contender for investors seeking decent staking rewards with flexibility. Solana’s staking rewards, at 8.3% APY. This staking yield is lower than the double-digit returns of its competitors, such as Cosmos (19.2% APY) and Polkadot (11.7% APY). However, Solana makes this up with one of the shortest unbonding periods at 2-4 days. You have quicker access to funds when unstaking SOL versus Cosmos and Polkadot at 21 and 28 days, respectively.How to Maximize Native Staking Rewards on Solana
To maximize staking rewards on Solana, investors can adopt several strategies. These don’t have to be complicated, like engaging in decentralized finance or liquid staking. You can make simple moves that will go a long way.Delegate to Reliable Validators
Quick Google searches on the validator can reveal much information. Free sites such as Solana Compass also provide a score.
Compound Rewards
Resist the temptation to withdraw the stake rewards. Reinvest these to benefit from compounding returns. If the Many wallets and platforms support automatic compounding of rewards, which can significantly boost earnings over time.Solana Network Statistics
Take note of these critical statistics that can impact your staked SOL.Total Active Stake (Staking Market Cap)
Like market capitalization, the total value of all Solana tokens, the staking market cap, indicates market confidence. Investors perceive large market capitalization positively, with the network showing price stability. The total value of staked SOL relative to total market capitalization also indicates the level of participation among token holders. The following section will discuss this further.Staking Participation Rate
Solana's staking participation rate is 66%, almost 3x higher than Ethereum’s. The staking participation rate is a percentage of a network's tokens that are staked on the network. The metric shows the level of engagement among investors and token holders, as well as the overall health and level of network security.Inflation Schedule
The SOL staking yield incentivizes validators and token holders to engage in network security. Being a validator costs money. This staking yield is the primary cause of network inflation, with additional SOL tokens printed over time.
The initial inflation rate is 8%, while the target long-term inflation rate is 1.5%. Knowing how this drives down staking yields is essential for a long-term investor.
FAQs about Staking Solana
Here are some of the frequently asked questions regarding Solana:What is the native token on Solana?
SOL is the native token on Solana. You can use SOL for a variety of purposes from trading, staking, and decentralized finance. The SOL token price has ranged from $95 to $297 in 2025.Is Solana staking safe for beginners?
Solana staking is relatively beginner friendly. Due to the DPoS consensus, you can stake for as little as 0.01 SOL (less than $2 as of writing). You can also access staking through a wide range of crypto wallets and centralized exchange services.How long does it take to unstake SOL?
You can unbond (unstake) your SOL in as fast as 2 days. The quick unstaking period makes Solana a favorite for those who need quick liquidity.Is Solana Staking Worth It?
The SOL price dropped heavily alongside other tokens. With a steep decline from over $200 to $135 as of writing, the SOL staking APY cannot compensate for the difference. However, should the SOL token price rebound, you could find yourself with significant profits.Start Staking Solana Today
Solana is one of the top blockchains in 2025 and has amassed millions of users with its high-performing network. If you are into investing in blockchain for the long term, Solana looks like a network with staying power. For long-term Solana investors, taking advantage of staking opportunities will boost their crypto asset returns. However, do remember that blockchain is a volatile industry and that certain projects can fail no matter how solid they are.Editor’s Note: This article was originally published in October 2024 but has been updated with new information.
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