What is staking

Staking is a fundamental part of any Proof of Stake (PoS) blockchain network. Staking is the mechanism where special nodes on the network, i.e., Validator Nodes, confirm transactions, create blocks, and extend the chain. In this section, we will focus on how staking works on the Solana network.

In Solana, any user can become a validator by running a node and delegating their SOL to that node.

The validator node is rewarded for building & validating blocks which generates staking yield on the delegated SOL. The earned rewards from staking are shared automatically to all SOL delegators every epoch (~ 48 hours)

When a validator node is selected to build a block, the node collects new transactions and combines them to propose a new block. The validator node also collects the fees of these transactions as part of the staking yield.