Learn how to stake your $S token and earn passive rewards!
Sonic Staking
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Rewards
APY
5% 6.5%
Details
Rating
7/10
Reward fee
15%
Risk
Medium
Unstake period
14 days
By staking $S tokens, you help secure the Sonic network while you earn rewards.
Validators play a key role in maintaining the Sonic network by processing transactions, validating blocks, and ensuring network consensus. Users who prefer to avoid the technical complexities of becoming a validator can stake their $S tokens with a validator. These users are called delegators. In return, they earn a share of the staking rewards while supporting the blockchain’s stability and decentralization.
In short, validators earn rewards for their work, and delegators receive a portion of those rewards. All Sonic validators have a fixed 15% commission fee they get from delegator rewards. The reward rate for delegators varies based on network conditions, ranging from 5% to 6.5% APY at the time of writing this opportunity page.
Delegators rewards are paid out in $S tokens (Sonic token) and are automatically distributed at the end of each staking epoch. On the Sonic network, a staking epoch lasts 10 minutes.
Delegator and validator rewards on the Sonic network come from block rewards (newly issued $S tokens) and a portion of transaction fees paid by network users. This opportunity page will walk you through the steps on how to become a delegator.
There is no minimum $S token amount to start staking. When unstaking, there is a 14-day unbonding period during which the tokens remain locked and do not earn rewards.
To get started, you'll need a compatible wallet, such as Metamask.
Pros & Cons
Earn Passive Income
Staking lets you earn rewards in $S tokens without actively trading. This provides a steady source of passive token rewards while contributing to the network’s security.
Low Entry Barrier
There is no minimum requirement of $S tokens to start staking.
Lower Technical Requirements
Running a validator requires technical expertise, hardware, and a minimum self-stake of 500,000 $S tokens. Delegation allows users to participate in staking with any amount of $S tokens, making it accessible to more users.
Helps Secure the Network
When delegating the stake, delegators help distribute the voting power across multiple validators. This increased decentralization makes the network more resilient to attacks.
User-Friendly
Delegating your $S tokens is pretty straightforward. You only need an EVM compatible wallet, like Metamask, and some $S tokens in your wallet.
Market Volatility
The dollar value of $S tokens fluctuates, which may reduce the real value of your delegator rewards. While you may accumulate more $S tokens over time, their dollar value could decrease.
Validator Performance Risks
In proof-of-stake networks, your tokens are staked to a validator responsible for maintaining security and earning rewards. If the validator fails to perform well—whether by going offline or breaking protocol rules—your rewards may be reduced.
Locked Funds
Staked tokens remain inaccessible for trading or any other use while they are locked. This means you won’t have immediate liquidity, potentially missing other financial opportunities.
Withdrawal Waiting Period
If you decide to unstake $S tokens, there is a 14-day delay before your tokens become available for withdrawal. During this period, they don’t earn any staking rewards. Such delays are a standard feature of proof-of-stake systems, though exact wait times vary by blockchain.