Well known for its fast transaction speeds, budget-friendly fees, and supportive environment for developers, Solana has established itself as a key player in the blockchain landscape. An integral part of Solana's functionality is its staking protocol, which offers users the opportunity to earn rewards while simultaneously contributing to the security of the network.
In this guide, we delve into the process of staking Solana SOL using the Nightly wallet.
And for a comprehensive walkthrough of the staking process via Phantom, Solflare, Exodus, Trust, Slope, Savl, Trustee, CoolWallet, and Ledger, read our detailed guide on How to Stake Solana SOL: A beginner’s guide.
What is Nightly Wallet
Nightly is a versatile multi-chain wallet that provides more than just transaction capabilities. It offers users a gateway to explore the Web3 universe, keep track of their portfolios, manage their NFT collections, and transfer or stake tokens. Its distinctive features include the ability to swap tokens, smooth QR code-based transactions, and a user-friendly display for NFT collections. As of today, Nightly is fully integrated with both NEAR and Solana blockchains.
Step-by-Step Guide to Staking SOL via Nightly
Step 1: Download Nightly Wallet App or Extension
The first step is downloading the extension or installing the app. In this guide, we are installing the Chrome extension. However, if you choose to go for the iOS/Android app, the UI/UX flow will be pretty much the same. Make sure you are using the official extension (follow the link from the official website and check the extension description thoroughly).
Step 2: Creating or Importing a Wallet
Before staking Solana (SOL), you will need to create or import a crypto wallet to Nightly. Once you have installed the Nightly extension or app, run it and decide whether to create a new wallet, restore an existing one using a seed phrase, or continue with Google.
For the purpose of this guide, we restore the existing wallet. To do this, enter your wallet seed phrase and click on Restore. If you don't have a seed phrase, you can create a new wallet by following the steps provided in the app.
Step 3: Securing Your Wallet
Security is paramount when dealing with cryptocurrencies. After creating or restoring your wallet, store your strong password in a secure place. Do not share your seed phrase with anyone! This is your only access to your funds in case you lose the password.
Step 4: Selecting an Address to Import
At this stage, you're required to select an address to import. This is typically provided by your wallet in a list of usable addresses. If the address with your previous balance isn't visible, try adjusting the address standard beneath the network name. You might need to use specific address standards such as m/44’/501’/0’/ or another compatible one.
Step 5: Wallet Configuration Done
Congratulations! You've successfully completed the wallet setup! The following steps are optional.
Step 6 (optional): Importing Additional Addresses
Once the initial setup is complete, Nightly Wallet provides you with the option to import more addresses. To do this, navigate to the Menu and select Add another wallet. This allows you to further customize and control your cryptocurrency transactions within the wallet.
Adding Wallets from Seed
In this step, you have the option to add more wallets. Simply press Add wallets from seed to proceed.
Find the imported wallet address
Select the address for the wallet you've just added. Once done, you can locate this imported wallet address within the menu options. It's important to note that this will be in addition to the initially imported wallet address, allowing for multiple wallets to coexist within your Nightly Wallet.
Step 7: Launch Nightly Wallet
Launch Nightly in your browser by clicking on the extension icon. Then enter the password you set previously. The main wallet dashboard displays your token balance, portfolio and available options. You can find your wallet address in the header (click on it to copy).
Step 8: Adding Funds to Your Wallet
Now, it's time to add funds to your wallet. To do this, click on the Deposit option on the main screen and follow the steps as prompted by the app. Once done, copy your wallet address and share it with the sender or use it to send coins to yourself from an exchange. After the transaction is validated by the network, which usually takes a few seconds, you will be ready to stake your tokens.
How to Stake Solana SOL on the Nightly Wallet
When you delegate your SOL tokens, you're presented with the opportunity to accrue an estimated 7% annual return. This process serves a dual function - augmenting your personal gain and bolstering the network.
Similar to other Proof-of-Stake (PoS) blockchains, Solana's block generation and validation hinge on the actions of its validators and delegators. Therefore, staking is an indispensable factor in maintaining the ecosystem's well-being and assuring the network's steady performance.
Step-by-Step Guide
Step 1: Initiating the Staking Process
To start staking, you'll first need to click on the Solana asset located on the main screen of your Nightly Wallet. After you've selected Solana, proceed by clicking on the Start earning button. This sets the staking process into motion.
Step 2: Choosing a Staking Method
Next, you need to choose between two staking methods: 'Liquid' (staking to a stake pool) or 'Regular' staking (staking to a validator). Both of these options are valid and effective. If you choose Liquid staking, your stake is distributed among several validators according to a specific delegation strategy. On the other hand, Regular staking allows you to delegate your stake to a validator of your choice.
In this Guideline, we choose Regular staking. Click + to add a new stake account.
Step 3: Choosing a Validator
It’s time to choose a validator to delegate your staking. For the purpose of this guide, certainly, we're choosing Everstake, which is widely recognized as one of the most secure, professional, and reliable validators not only in Solana but in the wider industry. By staking with us, you become part of a vibrant community of knowledgeable individuals.
Note that It's also important to compare the fees charged by different validators. In Solana, each validator sets their commission individually, which can range anywhere from 0 to 100%. Everstake, for instance, charges a low 7% fee for staking. Make sure to learn more about various validators and their commission rates to make an informed decision.
Step 4: Delegating SOL Tokens
Specify the number of SOL tokens you wish to delegate for staking, and then click Next. However, it's crucial to remember to keep a minimum of 0.05 SOL in your account to cover transaction fees. If you stake the maximum possible amount, you might run out of the necessary 'gas' (fees) for future unstake and withdrawal operations. So, plan your staking wisely.
Step 5: Transaction Confirmation, Kick-start Staking Rewards
Wait until the transaction is validated by the network. Once done, you've successfully staked your SOL tokens! The stake will activate in the next epoch, and your SOL tokens will start earning staking rewards. It's worth noting that in Solana, the rewards auto-compound, meaning they will be automatically added to your stake each epoch, enhancing your overall gains over time.
Step 6: Tracking Your Stake
To keep an eye on your staked assets, you need to click on the SOL asset located within your portfolio. This allows you to monitor your stake and observe the accumulation of rewards over time.
Click on the stake to see the details and the status of the stake.
How to unstake SOL tokens
Step 1: Initiating the Unstaking Process
To begin the process of unstaking, navigate to your SOL asset active delegation within your Nightly Wallet. You can start the unstaking process by clicking on this active delegation. Unstaking is a useful function when you want to free up your assets for other uses or trades. Remember, though, once you initiate unstaking, the staking rewards will stop accruing.
Undelegate SOL anytime by clicking the Unstake SOL button. Once the tokens have been unstaked, wait until the stake gets deactivated (next epoch).
Step 2: Withdrawing SOL Tokens Post Unstaking
Following the initiation of the unstaking process, go back to your SOL asset in the portfolio for further action. There, check the status of your stake and click on Withdraw SOL once the delegation status changes to inactive. At this point, you have successfully unstaked your SOL tokens and can use them freely as you desire. However, do keep in mind that after unstaking, the generation of staking rewards will cease.
How to track transactions and SOL staking rewards
You can keep track of all the transactions executed through the wallet dashboard. Just click on Activity, located at the bottom of the main page. To see the specifics of each transaction, click on it individually. To navigate to the default explorer, you can click on the available links, or you can copy a transaction hash and verify it in any other Solana explorer, such as Solanabeach, SolanaFM, Solscan, etc. Remember that you can conveniently track every operation performed on the blockchain. For more information, check out our dedicated Solana FAQ on our website.
We have also created a detailed guide on how to track SOL staking rewards with the help of your wallet address and Solana explorers. Be sure to check it out!
