With the advent of blockchain technology, staking serves as a fascinating means for individuals to become more deeply involved in the operation and upkeep of the blockchain network. When it comes to Sui, a leading-edge Layer-1 blockchain, staking SUI tokens with the help of the Ethos wallet provides substantial rewards. However, the specifics of staking can seem complex to those new to the field.
That's where this article steps in, turning complexities into manageable steps. Whether you're a well-versed blockchain enthusiast or a beginner aiming to capitalize on your SUI tokens, this guide can be insightful.
What is Sui
Sui is an advanced Layer-1 blockchain technology designed to facilitate smart contracts. These smart contracts are digital agreements that automate and execute themselves under specific conditions without the need for intermediaries. Sui is engineered to prioritize speed, scalability (capacity to handle growing amounts of work), and security to protect users' data and transactions.
The Sui Foundation, a dedicated group of tech professionals, led the creation of Sui. It utilizes the Delegated Proof-of-Stake (dPOS) consensus method, a democratic system where selected users, referred to as delegates, verify transactions and maintain the blockchain's integrity.
Sui employs the Move programming language, a specialized language developed for writing and implementing these smart contracts, adding another level of security and efficiency.
With a focus on asset-centric smart contracts, Sui supports contracts tied to digital assets, which could be anything from virtual currencies to digital art. It also deals with dynamic NFTs, a type of unique digital tokens that can evolve or change over time based on various factors.
Finally, Sui fosters a thriving Web3 community, a reference to the next generation of the Internet, where data is decentralized, and users have more control over their information. This is done by promoting decentralized governance, which means decision-making power is distributed among many users rather than a single authority.
What is Sui Staking
Sui staking is a rewarding way for users to become active participants in managing and sustaining the Sui blockchain network. This method allows participants to use the Delegated Proof-of-Stake (dPOS) system, where they can commit or "stake" their SUI tokens – the digital currency native to the Sui network.
These tokens are used to support validators, who are vital players responsible for ensuring the smooth operation and high-security levels of the network. When participants decide to stake SUI, they not only fortify the network's security but also earn rewards.
Furthermore, staking gives participants voting rights in the network's governance, reinforcing the concept of decentralized control, where decision-making is distributed among everyone, not centralized in a single authority. Therefore, Sui staking allows you to contribute to the network's growth and adaptability while reaping personal benefits and influencing its direction.
What is Ethos Wallet
Ethos wallet, tailor-made for the Sui blockchain, is a highly-regarded digital wallet for cryptocurrency. It offers unique characteristics, like extensive customization options and even gaming features within the wallet.
This wallet provides a safe environment for users to stake – a process of holding and locking up their digital currency (in this case, SUI tokens) – manage, and perform transactions with their SUI tokens and other digital assets on the Sui platform.
The Ethos wallet includes a feature for SUI staking, simplifying the procedure for users to delegate – or assign – their SUI tokens to trustworthy validators, such as Everstake. Validators are like auditors in the blockchain world; they validate the transactions and maintain the health of the network.
Through this delegation process, users can generate passive income by earning staking rewards, which are payouts received for participating in the staking process and helping to secure the network.
Step-by-step Guide to Stake Sui via Ethos Wallet
You can obtain SUI from an exchange such as Binance, OKX, Bybit, or KuCoin. Sui is a widely available coin that's accessible on most exchanges. Buy the amount you plan to stake, and ensure you complete any required verification process to facilitate the transfer of coins to your personal wallet.
Once you've secured your tokens, you need to set up a Sui-compatible wallet. Two examples of these are the Sui wallet and the Ethos wallet. After setting it up, transfer your Sui tokens into the wallet. This guide will use the Ethos wallet for demonstration, but these steps are generally similar across different wallets.
Step 1 - Install Ethos Wallet
Visit the Ethos wallet website or Google Chrome Store and click Add to Chrome. Once done, you'll be directed to the extension's page - click Add Extension.
Step 2 - Create a New Wallet
You can import your Sui wallet to Ethos. If you do not yet have Sui or Ethos wallet yet, click Generate a New Wallet. Save your recovery phrase, then click Create Wallet. After completing these steps, your wallet and the new address will be created.
Step 3 - Transfer tokens to your address
You're now ready to transfer tokens to this new address. If you're using a cryptocurrency exchange, look for and select the Withdraw/Transfer via Crypto Network option. Paste your Ethos wallet address in the appropriate field. If you're transferring from another wallet, click Send to initiate the transfer.
Step 4 - Stake Sui
With your desired amount of SUI in your wallet, click Staking. You’ll see the list of validators; scroll until you find Everstake and select it. Enter the amount you want to stake, and then Review and Confirm it in the subsequent windows.
Congratulations! You’ve just staked your SUI tokens!
Pros and Cons of Staking SUI
Engaging in financial decisions requires a solid understanding of the potential benefits and drawbacks. In light of this, let's examine the pros and cons of staking SUI tokens:
Advantages:
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Earning Passive Income: By staking SUI tokens, you can generate passive income in the form of staking rewards, which are periodically distributed to your wallet as SUI tokens.
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Supporting the Ecosystem: Staking your SUI tokens allows you to actively contribute to the growth and security of the Sui network. Additionally, you get the chance to back a validator you trust, contributing to the integrity of the network.
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Maintaining Asset Control: Even when your SUI tokens are staked, you still have full control over them. If desired, you can unstake them at any time, providing you with flexibility and control over your assets.
Potential Disadvantages:
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Depreciation of tokens: Fluctuations in the value of SUI could mildly affect the rewards from staking. This outcome is linked to variations in SUI's value rather than any issues with the system itself.
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Risks associated with validator inactivity or underperformance: It's not a common scenario, but should a validator decide to halt their node or fail to fulfill performance expectations, users may experience the slight inconvenience of having to transfer their tokens to a more dependable validator.
Why stake Sui with Everstake
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Dependable Infrastructure: Backed by a proficient technical team, we guarantee a robust infrastructure that promises 99.9% uptime. Our infrastructure comprises global bare metal servers, backup nodes ready for contingencies, and a team of dedicated DevOps that monitors the network around the clock.
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Esteemed Validator: Renowned in the field of PoS/DPoS blockchain validation, Everstake has earned the trust of over 625,000 users, operating across 70+ blockchain networks.
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Clarity and Support: At Everstake, we prioritize openness and transparency in all our operations. Our activities are accessible to the public, and we are always prepared to address any queries. Please feel free to contact us on Discord anytime.
Staking Sui FAQs
What is Everstake?
Everstake is a recognized validator that has earned the trust of over 625k users spanning 70+ blockchain networks, including Sui. Founded in 2018 by a team of dedicated engineers, Everstake was designed to serve the global community. This self-funded and profitable enterprise has a workforce of 125+ professionals, running more than 8,000 nodes for over 70 blockchain protocols, including bridges and oracles.
Where to stake Sui?
Sui can be staked either directly in your wallet or via the Sui Explorer.
What is the minimum SUI required for staking?
The minimum staking amount is 1 SUI.
Is staking cryptocurrencies safe?
Staking cryptocurrencies is considered one of the safest ways to enhance your digital assets.
Can SUI be staked with Everstake?
Yes, Sui can be staked with Everstake either through wallets or Explorer.
How can SUI be unstaked?
Sui can be unstaked using the same wallet that was used for staking simply by selecting Unstake SUI. This can also be done via Sui Explorer. The process is instant, but it should be noted that rewards for the current 24-hour epoch will not be received.
How to stake SUI via Ethos wallet?
To stake SUI via the Ethos wallet, install the wallet, transfer your tokens to it, select Staking and then choose Everstake. For a detailed list of all possible methods for staking SUI, visit the Everstake & Sui page.
How to stake Sui via Sui Wallet?
For staking SUI via the Sui wallet, install the wallet, transfer your tokens to it, select Stake and then choose Everstake. Visit the How to stake SUIi via Sui wallet page for details.
For any inquiries, you're welcome to contact our SUI Blockchain Manager on Twitter. You can also follow Everstake on Twitter, Discord, and blog for the latest updates.
