Staking On Sui: How To Stake Your Sui & Earn APY Rewards
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A guide on how to stake SUI & earn APY rewards.
SUI Staking: What is Sui?
Sui is a layer 1 blockchain developed by Mysten Labs.It operates using a variant of the Move programming language to achieve provide high throughput and low latency. Currently, SUI has the capacity to process >120,00 transactions per second. The architecture of Sui is described in detail in the whitepaper and documentation.
SUI Staking: What is Sui staking?
For your average user, staking on Sui is the web3 equivalent of placing your funds into a high yield savings account. But, what’s really cool is you’re helping secure the network, too! Here’s how it works:
In order to stake on SUI, a user is required to delegate SUI to a validator to earn rewards. An easier way to understand this is to think of the delegation as the Web-3 equivalent of placing your local currency into a high-yield savings account. SUI operates using a POS (Proof of Stake) system that relies on delegated POS to determine the set of validators who process transactions and create new blocks. Each validator’s stake supports and helps dictate transaction votes that confirm their legitimacy.
Every time a block is validated new tokens of that currency are minted and distributed as staking rewards
A stake can be thought of as a vote of confidence in the validator. This demonstrates trust, and allows the validator to confirm transactions on the SUI network. It is important to remember that the validator does not have access to your coins, which remain securely under your control and can be unstaked at any time.
Validating is an important network function that rewards participation based on the size of the stake. Rewards are calculated based on Sui’s inflation rate, which decreases over time as the number of transactions on the network increases.
Sui is currently in its Incentivised Testnet phase which will evolve into a fully decentralized Mainnet. Mainnet is rumoured to launch at the end of Q1 2023.
SUI APY: What rewards can I earn staking on Sui?
As Sui is still in the Testnet phase, it is hard to forecast staking APY.
To gauge a comparable APY, you could look at validators on other blockchains, other blockchains returning an approximate APY of 7.7%. This means that by simply staking your coins instead of holding them in a wallet you could earn 7.7% each year.
SUI Staking: How to start staking on Sui?
Once Mainnet launches you can follow these 4 simple steps to start staking on Sui:
- Setup a Sui wallet that supports staking (Sui wallet, Suiet, Ethos wallet or Fewcha Wallet)
2. Top up your wallet with Sui. Keep your wallet funded with a small amount of Sui at all times to cover transaction fees.
3. Within your wallet, decide how much to stake. The more you stake the more you can earn!
4. Choose a validator to delegate to — check out our AHOY validator launching soon
5. Confirm your stake and start earning rewards!
SUI Staking: AHOY Validator 🏴☠️
AHOY is a pirate themed NFT collection on the SUI blockchain.
DISCLAIMER: As the Mainnet has not launched — AHOY has not yet secured a Mainnet validator on the Sui blockchain.
AHOY will be the first community-backed validator on SUI, with validator rewards distributed weekly via a custom raffle platform.
A significant portion of the mint proceeds will be contributed to the Validator to support the SUI Network and kickstart our raffles.
The custom raffle platform will reward holders with multipliers based on the number of NFTs held. A portion of the validator rewards will be invested into other projects to facilitate the growth of the Ahoy Network and, as a result, offer increased rewards to the community via our automatic raffle system.
The validator will be supported by a leading development & infrastructure team with over 2 years of running a top 2% validator on the Solana blockchain.
Come join the AHOY crew & start staking with us on Sui
https://twitter.com/AHOY_Pirates
