If you’re new to Cardano, you might be wondering what staking is and how it works. This guide will explain everything you need to know about Cardano staking.

What is Staking?

Staking is the process of actively participating in transaction validation on a proof-of-stake (PoS) blockchain. On Cardano, you can stake your ADA to help secure the network and earn rewards.

Unlike other blockchains, Cardano staking is non-custodial. This means your ADA never leaves your wallet, and you maintain full control of your funds at all times.

How Does Cardano Staking Work?

Cardano uses a unique proof-of-stake consensus mechanism called Ouroboros. Here’s how it works:

  1. Delegation: You delegate your ADA to a stake pool
  2. Block Production: Stake pools produce blocks based on their total stake
  3. Rewards: Pools earn rewards for producing blocks
  4. Distribution: Rewards are distributed to all delegators

Key Concepts

  • Epoch: A period of 5 days in which stake is calculated and rewards are distributed
  • Active Stake: The amount of ADA delegated to a pool
  • Saturation: Pools become less efficient after reaching 100% saturation (approximately 68M ADA)

Benefits of Staking

1. Passive Income

Earn approximately 3-5% annual returns on your staked ADA. Rewards are automatically added to your stake.

2. Network Security

By staking, you contribute to the security and decentralization of the Cardano network.

3. No Lock-up Period

Your ADA is never locked. You can spend or move it at any time, though you’ll need to wait for unstaking to take effect (2-3 epochs).

4. Voting Rights

Staked ADA gives you voting power in Cardano’s governance system, allowing you to participate in decision-making.

How to Start Staking

Staking on Cardano is simple:

  1. Get a Wallet: Download a Cardano wallet like Daedalus, Yoroi, or Eternl
  2. Transfer ADA: Move your ADA to your wallet
  3. Choose a Pool: Research and select a stake pool (like BKV Pool!)
  4. Delegate: Follow your wallet’s instructions to delegate to the pool
  5. Earn Rewards: Wait 2-3 epochs and start receiving rewards

Choosing a Stake Pool

When selecting a stake pool, consider:

  • Performance: Check the pool’s historical performance
  • Margin & Fees: Lower fees mean more rewards for you
  • Saturation: Avoid oversaturated pools
  • Mission: Support pools that align with your values

Common Questions

Is staking safe?

Yes! Your ADA never leaves your wallet. You maintain full control of your funds.

Can I lose my ADA by staking?

No. Staking on Cardano is risk-free. Your principal is never at risk.

How much can I earn?

Currently, Cardano staking rewards are around 3-5% annually, though this can vary.

When will I receive rewards?

You’ll receive your first rewards approximately 15-20 days after delegating, then every 5 days (every epoch) thereafter.

Conclusion

Staking is one of the most powerful features of Cardano. It allows you to earn passive income while supporting the network’s security and decentralization. With no lock-up periods and non-custodial delegation, it’s a win-win for everyone.

Ready to start staking? Delegate to [BKV] Pool today and join our community!

Have questions about staking? Reach out to us on Twitter!