Staking is a fundamental process in Polkadot's Nominated Proof-of-Stake (NPoS) consensus mechanism, enabling token holders to secure the network and earn rewards. This guide covers everything you need to know about staking on Polkadot, from joining nomination pools to understanding validator selection and rewards.
How to Stake on Polkadot
Stake Through Nomination Pools
The minimum active bond required to become a nominator and earn rewards varies dynamically. If your stake is below this threshold, you can participate in staking by joining nomination pools with a minimal bond.
Key Benefits of Nomination Pools:
- Lower entry barrier (e.g., as little as 1 DOT).
- Automated validator selection.
- Shared rewards proportional to your stake.
👉 Learn how to join a nomination pool
Proof-of-Stake (PoS) Explained
Blockchain networks rely on consensus mechanisms to finalize blocks. Polkadot uses Proof-of-Stake (PoS), where validators are chosen based on their staked tokens rather than computational power (as in Proof-of-Work).
How PoS Works
- Validators produce blocks and validate transactions.
- Nominators back validators by staking tokens.
- Rewards are distributed for honest participation.
Advantages of PoS:
- Energy-efficient compared to PoW.
- More inclusive—no specialized hardware required.
Nominated Proof-of-Stake (NPoS)
Polkadot’s NPoS enhances decentralization by allowing token holders to nominate validators.
Key Features of NPoS
- Validator Election: Validators with the highest backing enter the active set.
- Stake Distribution: Stake is evenly distributed to maximize security.
- Slashing: Misbehavior (e.g., downtime) results in penalties.
👉 Explore Polkadot’s staking dashboard
How to Be a Nominator
Responsibilities
- Select reliable validators.
- Monitor validator performance (e.g., era points, commission rates).
- Avoid over-concentration on a single validator.
Choosing Validators
Prioritize validators with:
- High era points.
- Low commission fees.
- Verified on-chain identity.
- No prior slashes.
Staking Rewards
How Rewards Are Calculated
- Validators earn era points for producing blocks.
- Rewards are distributed pro-rata after validator commissions.
Note: Unclaimed rewards expire after 84 eras.
Claiming Rewards
Rewards must be manually triggered via:
- Polkadot-JS UI.
- Staking dashboard.
Risks of Staking
- Slashing: Validators (and their nominators) may lose stakes for misconduct.
- Unbonding Period: Tokens are locked for 28 days after unbonding.
- Liquidity Limitation: Staked tokens cannot be used for transfers or crowdloans.
FAQ
Why am I not receiving rewards?
Possible reasons:
- Your stake is below the minimum active bond.
- Nominated validators are inactive.
- Validators charge 100% commission.
How many validators are there?
Polkadot aims for ~1,000 validators at maturity.
Can I unstake immediately?
Use Fast Unstake if your stake hasn’t backed any validator for 28 eras.
Resources
By staking on Polkadot, you contribute to network security while earning passive income. Start staking today!
👉 Begin your staking journey here