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SUI, pronounced as “swee” like in “sweet”, is a Layer-1 smart contract blockchain built using the Rust programming language. With a unique consensus mechanism and a strong economic model, SUI provides a stable ecosystem for developers and users alike, stimulating the growth of a dynamic Web3 community. The goal is to transform the landscape of asset-centric smart contracts and allow for the generation of mutable, dynamic NFTs.
In this guide, we will explore how to stake SUI. Earning rewards through staking SUI is a straightforward process. Read on to get in-depth guidance on how to stake SUI with validators.
What is SUI
SUI, a Delegated Proof-of-Stake (dPOS) blockchain, was founded in 2022 by the SUI Foundation, a collective of former Meta engineers and the brains behind the Move programming language. The SUI coin, which carries the same name as the network, is its native token. The SUI supply is fixed at 10 billion, with MIST representing its smallest unit. The SUI blockchain empowers SUI coin holders to engage in the protocol’s decision-making process. Through community involvement in governance, SUI aspires to promote decentralized and transparent network management, spurring sustained growth and development. Several aspects of SUI, such as Move Language and Parallel Execution SUI staking, are outlined below. For a more comprehensive overview of the SUI Blockchain, consider this article — SUI Ecosystem Explained.
Move Language
Move is an open-source programming language, the brainchild of Diem (formerly a project under Meta), devised specifically for constructing and handling smart contracts on the blockchain. As a statically-typed language, Move undertakes data type validation at the time of compiling rather than during execution.
The Move language incorporates an ownership model and can perform partial transactions at runtime, allowing the blockchain to revert transactions that may cause issues before they are fully committed.
Parallel Execution
Typically in blockchain systems, all network nodes need to achieve consensus on the state of the blockchain before incorporating new transactions, leading to potential bottlenecks and slower processing times with increasing transaction volumes.
Parallel execution mitigates these problems by enabling nodes to process several transactions concurrently. SUI executes transactions with non-overlapping states in parallel, distinguishing between single-owner and shared objects. Depending on the object category implicated in a transaction, SUI applies different consensus protocols.
SUI Ecosystem
Boasting over 600,000 Twitter followers and 700,000+ Discord users, SUI carves out a significant space within the Web3 communities, guided by Ecosystem Director Koh Kim. The SUI team channels its focus into asset-centric smart contract technology, fostering mutable and dynamic NFTs. As a result, SUI shelters a diverse and populous NFT community within Web3, including groups like SUIpiens, Cosmocadia, and Studio Mirai.
SUI accommodates several functional wallets, such as the SUI Wallet by Mysten Labs, Ethos Wallet, and Fewcha Wallet, providing game access, testnet token import, NFT creation, and SUI marketplace browsing. SUI’s active marketplaces host low-fee, practical NFT platforms, including the popular Clutchy, which offers unique features like a launchpad and wallet-accessible games.
Furthermore, SUI serves as a hub for several engaging DeFi projects:
- MoveEx: As the inaugural hybrid liquidity DEX on the SUI Network, MoveEx recently joined forces with the SUI Foundation to build a central limit order book.
- Comingchat: This SocialFi-based Web3 portal application comes with integrated wallets, games, and a variety of DeFi and GameFi solutions.
- Dmens: An on-chain Twitter alternative, Dmens operates within the SUI ecosystem, offering a unique social media experience.
- SUI Name Service: As one of the most active projects on SUI, this service aids in establishing the Web3 SUI identities of projects and fosters community connections.
Validators
The SUI Blockchain depends on validators, such as Everstake, to safeguard its network and uphold its decentralized structure. These validators are involved in transaction processing, block validation, and consensus building.
Validators stake their SUI tokens as a sign of their commitment to the network’s efficiency and stability. As a result, they earn staking rewards. These rewards are shared with their delegators. Token holders in the SUI network can delegate their tokens to a preferred validator. This way, they engage in network governance and earn passive income. The potential earnings can be influenced by factors such as the validator’s performance, and the quantity and duration of a delegator’s stake. This method ensures the security, speed, and adaptability of the SUI Blockchain.
What is SUI staking
SUI staking means joining the security and decision-making process of the SUI blockchain. This blockchain uses a delegated proof of stake or dPOS system. That means, users stake their SUI tokens on preferred validators, helping to keep the network safe and reliable, while also earning rewards.
Rewards from staking are a kind of passive income, they are given in return for staking tokens. The amount of rewards depends on things like how many tokens are staked, how long they’re staked for, and how well the chosen validator works.
SUI staking allows those who hold SUI tokens to have a say in how the blockchain is run. This helps to make sure that decisions are made in a way that is spread out and clear to see. It also helps the network to keep growing and changing in a world where blockchain is always evolving.
How to stake SUI
To stake SUI tokens, users can leverage numerous user interfaces offered by wallets, validators, and other platforms with built-in staking functionality. Such provision eliminates the necessity for direct interaction with Move contracts. An exhaustive list of wallets supporting SUI staking, along with usage guides, is available on the Everstake & SUI page.
What do you need to start staking SUI
To begin staking SUI, first, obtain SUI tokens from your preferred crypto exchange. Transfer these tokens to an SUI-compatible wallet, such as Ethos Wallet or Morphis Wallet, which supports staking. Multiple wallets are available, each offering unique features to cater to individual needs.
A step-by-step guide to stake SUI
To stake SUI tokens, follow these steps:
- Acquire SUI tokens via an exchange or alternative methods.
- Transfer the tokens to an SUI-compatible wallet.
- In your wallet or on the staking platform, click Stake.
- Select Everstake or use the address: 0xbba318294a51ddeafa50c335c8e77202170e1f272599a2edc40592100863f638.
- Click Stake and confirm the transaction in your wallet.
For more insight and a detailed guide on every method and wallet, visit everstake.one/SUI.
How to Unstake SUI
Stake withdrawal or unstaking of SUI can be done via the same wallet that was used for staking by simply clicking on Unstake SUI. Alternatively, the same can be done via the SUI explorer. The unstaking process is instant, but please note that rewards for the current epoch (24hrs) will not be received.
What is SUI Staking Pool
SUI staking pool is essentially a blockchain address controlled by a validator and is structured to accept stakes from blockchain users. These users willingly stake their coins in anticipation of obtaining rewards. For instance, one can stake SUI tokens at any moment in the Everstake staking pool, available at this link, and start accumulating rewards.
Pros and Cons of SUI Staking
Like with every financial decision, it is essential to understand the pros and cons of each process. Let’s examine the advantages and disadvantages of delegated staking.
Advantages:
- Enjoy passive earnings via staking rewards in the form of SUI tokens.
- Support the SUI ecosystem and a validator of your choice.
- Retain full control of your assets due to a non-custodial setup.
Disadvantages:
- Token devaluation: Should SUI’s value fall, it might have a dampening effect on staking returns.
- Validator inactivity or poor performance: In cases where a validator stops their node or performs poorly, users might have to face the slight inconvenience of token redelegation to another validator.
Where to stake SUI
In the wallet or on the staking platform, select Stake, then choose Everstake. For an all-encompassing guide on SUI-staking supportive wallets and thorough usage instructions, refer to the Everstake & SUI page.
Why stake SUI with Everstake
Trustworthy Infrastructure: Our seasoned technical team ensures a dependable setup with a 99.9% uptime. Our infrastructure includes global bare metal servers, backup nodes for contingencies, and a dedicated DevOps team monitoring the network around the clock.
Credible Validator: With a reputation as one of the largest PoS/DPoS blockchain validators, Everstake has gained the trust of more than 625,000 users across over 70 blockchain networks.
Transparency and Support: We pledge complete transparency in all our operations, with our activities accessible to the public. We’re always ready to answer any questions and encourage you to reach out to us on Discord.
FAQs
Where is the ideal place to stake SUI?
It can be done either in your wallet or through the SUI Explorer.
What is the required amount of SUI for staking?
There is no minimum limit. Even one MIST is sufficient for staking.
Is staking crypto a safe practice?
Indeed, staking is considered one of the safest methods of asset management as you retain full custody of your tokens.
Can SUI be staked with Everstake?
Yes, SUI can be staked with Everstake through various wallets and the staking platform.
