How to Stake Solana (SOL) and Earn Passive Income

This Solana staking guide walks you through the Solana staking process and explains why staking could be a smart move

Key takeaways

Staking Solana allows you to earn passive income through staking rewards while participating in network governance.

There is no minimum requirement for staking Solana, but the practical minimum is around 0.01 SOL.

All you need to start staking Solana is a SOL-compatible wallet.

Staking is considered one of the safer ways to participate in crypto ecosystems.

Solana is a blockchain network known for its fast transaction speeds and an ecosystem of decentralized applications (DApps). It also combines the proof-of-stake (PoS) and proof-of-history (PoH) consensus mechanisms, allowing you to stake its native currency, SOL SOLUSD, to earn rewards.

This Solana staking guide walks you through the Solana staking process and explains why staking could be a smart move, especially if you’ve been wondering how to earn passive income with SOL.

What is Solana staking?

Solana staking consists of locking SOL into a cryptocurrency wallet. The process rewards you in the following ways:

Staking rewards: You earn rewards for staking SOL — a percentage based on how much you’ve staked, Solana’s current inflation rate (which fluctuates and is set to decrease every year), the total amount of SOL staked on the network, and how long you’ve been staking overall.

Governance: Staking gives you a say in governance, allowing you to vote on proposals that shape the Solana network. This approach prioritizes those with the largest investments, assuming they’ll act in the network’s best interest.

Network security: Staking increases security to create a stable investment environment. By staking, you’re directly contributing to Solana’s health and longevity. That said, if a few wallets stake large amounts, one could argue they’re centralizing the network.

If you earn rewards staking SOL, they’re paid out every two days — a period known as an epoch.

When staking SOL, you’re delegating funds to a Solana representative (a validator.) Validators process transactions, produce blocks, and vote on network proposals. It’s essential to choose a validator that aligns with your vision for Solana, as they’ll be voting in your stead, much like an elected official in traditional governments.

Validator votes are stake-weighted. The more stake a validator has, the more weight their vote carries.

Solana validator vs. delegator: By delegating funds to a validator, you become a delegator. The validator’s job is to vote in the network’s best interest. It’s your job to choose reputable validators that keep the network safe.

Did you know? Solana is one of the fastest blockchains in terms of transactions per second (TPS). It currently averages around 1,128 TPS, with a theoretical max of 65,000 TPS.

Staking Solana for beginners

There are a few things to consider as you prepare to stake Solana.

Understanding staking methods

On the surface, staking is quite simple; however, there are actually two staking methods — each affects your SOL liquidity.

Liquid staking: Earn rewards while retaining control of your SOL’s liquidity. When you liquid stake, you receive liquid staking tokens (LSTs) equivalent to the amount of SOL you stake. You can use those LSTs in Solana’s decentralized finance (DeFi) applications as you would if you weren’t staking funds.

Native staking: Native staking is the original method that locks your funds away, allowing you to earn rewards and participate in governance. However, you cannot use your funds without pulling them out via the unstaking process. This process is beginner-friendly but limits what you can do with your SOL.

The difference between the two is flexibility. Native staking is less flexible but easier for beginners, while liquid staking retains your liquidity for use in DeFi and other applications.

Solana staking tax 2025

In the United States, Solana staking rewards are subject to income and capital gains tax.

Income tax: You’re required to pay income tax on the value of SOL at the moment you unstake it. You also pay income tax on staking rewards when you gain the ability to withdraw them.

Capital gains tax: You’re required to pay capital gains tax once you sell or convert that SOL.

how to stake solana

Now, let’s get into the Solana staking tutorial.

Choose a Solana wallet

First, you need a wallet to store and stake your SOL. Most Solana wallets have built-in staking capabilities. This guide uses the Phantom Wallet for demonstration purposes.

Download Phantom Wallet from its official website by clicking the “Download” button.

Next, click “Create a new wallet.”

You’ll be asked to continue with an email or a seed phrase wallet. Click “Create a seed phrase wallet.”

Enter a password, and proceed to the recovery phrase screen. Write down your recovery seed phrase on piece of paper, check the confirmation box, and click