Solana 101

A simple explanation of staking on Solana

Key concepts

Solana staking involves delegating SOL tokens to a validator, like Figment, which operates nodes that help secure the network. Rewards are earned based on the validator's performance and the amount of SOL staked. Key points:

  • Stake account: A new stake account every time you want to stake more, thus there is a one-many relationship between your main wallet and stake accounts. When staking, SOL is moved from your main wallet to this new stake account. When unstaking, SOL is moved from a stake account back into your mainnet wallet. Both are logically and technically in your custody within the entire staking lifecycle (Read more in What's Next)
  • Delegation: When delegated to a validator, funds remain in the stake account and earn rewards by pointing to the validator
  • Stake account lifecycle: Stake accounts have various states: inactive , activating , active or deactivating
  • Rewards: Rewards accrue every epoch (~2 days) proportionally based on active stake. 2 types:
    • Inflation: Contains new SOL issuance. Earned when a validator votes on blocks created by other validators. Accrues to stake account active_balance thus automatically compounded
    • MEV: Contains tips from MEV searchers hoping to have their transactions included in the block. Earned when a validator is selected to propose a block as the “leader” (Solana creates ~216,000 blocks/day). Accrues to stake account inactive_balance thus not automatically compounded

Stake account lifecycle

Status

Description

Action Needed

inactive

(before staking)

Stake account created but not delegated to Figment, thus no rewards

Delegate to

Figment's mainnet validator

or

Figment's devnet validator

activating

Stake account will be activated at the next epoch boundary, and earn rewards the epoch after that

active

Accrue inflation and MEV rewards every epoch in the stake account balance

Optional: Periodically withdraw MEV rewards using

Jito UI

or

POST /withdraw

deactivating

You've broadcasted your signed undelegation transaction and continue earning rewards until the end of the epoch

inactive

(after staking)

Funds are withdrawable in the epoch following deactivation

Withdraw rewards and principal from stake account


Extra credit: delegate MEV rewards

MEV rewards accrue to your stake account's inactive balance and don't auto-compound like inflation rewards. To earn on them, Solana requires you to manually activate them by signing a transaction from your delegating wallet:

  1. Withdraw your MEV rewards on an active stake account with POST /withdraw. Omitting amount_sol withdraws all of your MEV rewards and keeps your existing stake active
  2. Delegate your withdrawn SOL with POST /stake
  3. Earn rewards next epoch!

Start staking in minutes

Try these recipes to create, sign and broadcast SOL staking transactions ASAP: