Let’s talk briefly about SUI staking and teach you how to stake and earn income

律动BlockBeats · 2023-07-27T07:23:22.000Z

Original source: Sui Network Staking is a basic component to keep the Sui network safe and efficient. This article will introduce you to the staking incentive policy and how users can stake SUI. Sui allows users to stake tokens to specific verification nodes on the network. The staking mechanism not only earns rewards for users, but also uses an economic model to incentivize verification nodes to provide optimal performance. Validation nodes form the backbone of the network, allowing the distributed ledger (i.e. the blockchain) to remain secure while being decentralized. They process transactions, store data, and perform consensus to validate all operations on the network.

Original source: Sui Network
Staking is a fundamental component to keeping the Sui network secure and running efficiently. This article will introduce you to the incentives for staking and how users can stake SUI.
Sui allows users to stake tokens to specific verification nodes on the network. The staking mechanism not only earns rewards for users, but also uses economic models to incentivize verification nodes to provide optimal performance.
Validation nodes form the backbone of the network, keeping the distributed ledger (i.e. blockchain) secure while being decentralized. They process transactions, store data, and perform consensus to verify all operations on the network.
As a permissionless system, anyone can become a validator. However, this requires not only robust hardware, but also a minimum of 30 million SUI staked to get started. Independent validators can provide the majority of this stake, but they can also accept stakes from other users.
Incentives
Sui uses a Delegated-Proof-of-Stake (DPoS) mechanism to protect and run the network. This model allows SUI holders to stake their SUI to validators, and the staked tokens cannot be transferred or sold before unstaking. The size of the staked share of the validator is equal to their voting weight in the network. The more staked, the more say the validator has in the operation of the network.
In return for processing transactions and enforcing consensus, validators are rewarded based on the gas fees they collect. The most efficient validators are able to process more transactions, driving the entire network to run more efficiently, and receive larger rewards for their stake.
Poorly performing validators may experience more downtime or other technical issues, process fewer transactions, and receive smaller staking rewards for themselves and stakers. Validators that perform particularly poorly may lose staking opportunities and ultimately fall below the minimum standard for participating in the network. This token economic model ensures that only the best validators participate in network support.
User pledge
Staking allows Sui users to actively participate and support the network. When users add their SUI to the stake of a specific validator, they help that validator operate and receive a certain percentage of rewards based on the amount staked. The specific reward calculation formula can be found in Sui's Delegated Proof of Stake documentation.
In addition to receiving rewards, users also strengthen the incentive model of validators. If users stake SUI to a poorly performing validator and receive little reward, they can unstake it in the next epoch (about 24 hours of network operation cycle). Validators will be incentivized to fix their performance issues or lose their status as validators completely when they see users' stakes reduced.
Validators that perform well will earn more for their staked users, incentivizing them to increase their stakes and attracting other users to join. In addition to earning more SUI, some validators may also attract users to stake in other ways. For example, Red Bull Racing will launch its own validator and encourage fans of its Formula 1 team to support the team by staking. This branded validator makes it easier for stakers to find opportunities that match their interests.
Ultimately, there are resource costs involved in running a validation node that supports the growth of the Sui network. Sui’s token economic model relies on many inputs, based on incentive modeling, to keep the network healthy and provide an exciting and performant experience for all users. Staking and its constituent rewards are part of the system, allowing users to directly participate in it.
Step-by-step tutorial
1️⃣ Go to the Chrome Web Store on the browser of your choice (Chrome is recommended) and click “Add to Chrome”.
2️⃣ Once the installation is complete, you will be taken to this page. Click "Get Started" and if you don't have a wallet yet, select "Create a New Wallet".
3️⃣ You will be prompted to create a password for your new wallet (make sure it is strong), and then you will receive your recovery phrase.
The 12-word mnemonic key is extremely important and must be stored carefully. If someone gets hold of your mnemonic, they will be able to access your assets. If you lose it, the wallet cannot be recovered.
suggestion:
- Never share your mnemonic phrase with anyone
- Store it in multiple places, preferably offline
Once completed, click "Open Sui Wallet" to access your wallet.
4️⃣ Your new wallet is ready, the address is a string of characters starting with 0x. You need this address to top up your account, or receive funds from others. Once you have SUI (the minimum staking amount is 1 SUI, remember you also need some for gas fees), you can start staking.
5️⃣ Click on “Stake & Earn SUI” and select the validator of your choice, scroll down to select the appropriate validator, there are 105 validators worldwide as of July 27.
6️⃣ Enter the amount of SUI you wish to stake (minimum 1) and click “Stake Now”. You can also view the APY and when you can start receiving staking rewards.
7️⃣ That’s it! Congratulations on staking your SUI! If you click “Currently Staked”, you can view detailed information about the SUI you have staked and earned.
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