Solana Staking: Why SOL Cannot Be Mined and How Delegation Works
Summary
The document explains that Solana uses proof of stake rather than proof of work, so SOL is not created through conventional mining. It distinguishes direct network staking from services that mine other coins and pay users in SOL, describing the latter as indirect conversion rather than Solana mining. Staking involves committing SOL to support network validation, commonly by delegating to validators or using a custodial service. The article gives a reward estimate of 6–8% APY but says rates vary.
It compares self-custody, where users control keys and choose validators, with exchange staking, which may simplify participation but depends on the provider. It recommends reputable validators, spreading stake across validators, and compounding rewards, and flags price changes and validator performance as risks. The piece does not provide a protocol-level account of rewards, liquidity or lockup conditions, or independently verified comparisons of custodial protections. Its exchange-specific safety and return claims should therefore be treated as promotional rather than general guarantees.
Key ideas
- Solana uses proof of stake, so users do not mine SOL directly with computing hardware.
- Delegating SOL to validators is described as a way to support the network and earn staking rewards.
- Mining other coins and receiving SOL in exchange is not the same as mining Solana.
- Self-custody gives users control of their keys but also responsibility for validator selection and security.
- Staking involves risks including price changes and validator performance, and reward rates can vary.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.