Solana Solana Inflation and Staking Rewards

<p><em>This post will outline incentives for Solana token holders to stake SOL and earn rewards by securing the network.</em></p><p><strong>To stake your SOL and earn rewards use our simple <a href="https://economy.p2p.org/stake-sol-solana-with-solflare-wallet-and-ledger/">step-by-step guide</a> for staking with Solflare Wallet and Ledger Nano S/X.</strong></p><p>Inflation has been enabled in <a href="https://p2p.org/solana">Solana</a> allowing SOL delegators to earn rewards for contributing to the security and decentralisation of the network. </p><p>We've gathered the most important information related to SOL staking and inflation below. For more details, visit <a href="https://p2p.org/solana">p2p.org/solana</a>. </p><h2 id="solana-inflation">Solana Inflation</h2><p>In order to compensate node operators for state validation and delegators for locking their funds, every epoch (~2-3 days), protocol issues new SOL based on emission rate called inflation. <strong>Every epoch staking rewards are added to the active stake automatically.</strong> Inflation parameter is defined on a protocol level representing annual emission percentage. The exact value of new minted SOL is recalculated every epoch based on the total supply.</p><p>Solana token emission is distributed among validator pools based on their stake weight in the network. Every epoch a special program on Solana calculates the weight of all active stakes and assigns points that are used to proportionally divide SOL rewards among participants for that period.</p><p>A decision about inflation rate value is very important for sustainable network growth. It should incentivize participants to stake, cover costs of operating for validators and at the same time avoid over dilution of network users. <strong>For the first year annual emission will constitute 8%</strong>. In the following years inflation percentage will be decreasing by 15% per year until emission reaches ~1,5%.</p><p>Another revenue source is derived from transaction fees. It is expected to be relatively low for the first years. In current implementation 50% of transaction fees is burned while the rest goes to the current leader who processed the transaction.</p><h2 id="sol-staking-rewards">SOL Staking Rewards</h2><p>With the enabling of Solana inflation, SOL token holders are now able to earn rewards on their staked tokens. </p><ul><li>The Solana <strong>inflation/emission rate</strong> will start at 8% and decrease by 15% annually until it reaches a long-term inflation of 1.5%.</li><li>The <strong>SOL rewards</strong> <strong>are</strong> <strong>distributed</strong> to delegators every epoch, which is approximately ~2 days.</li><li>The <strong>Solana</strong> <strong>warm-up period</strong> - the time taken for your SOL stake to start earning rewards is approximately ~2 days if the amount is less than 25% of staked tokens.</li><li>The <strong>Solana cool-down period</strong> - time for your stake to become liquid after you stop staking is approximately ~2 days if the amount is less than 25% of staked tokens.</li><li>Your staking <strong>rewards are compounded automatically</strong>. </li></ul><p>In the beginning all Solana staking rewards will be distributed to validator pools. In the future, additional percentages from total issuance can be directed to the ecosystem development purposes and archivers, network participants who provide storage service downloading parts of the ledger and providing proof of replication of storing the segments.</p><p>The efficiency of Solana staking from an economic perspective depends on the overall participation. The total issuance is distributed to active delegators. If less than all SOL are staked, delegators will receive higher rewards than initial inflation.</p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2021/02/Sol-infl.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2021/02/Sol-infl.png 600w, https://economy.p2p.org/content/images/2021/02/Sol-infl.png 775w" sizes="(min-width: 720px) 720px"></figure><p>For every epoch (2 days), the annual staking yield can be calculated using the formula:</p><p><em>APY = inflation * archiver_share * foundation_share / staking_ratio</em>, where<br><em>staking_ratio = staked_tokens / total_supply</em></p><p>At time of launch, <em>archiver_share </em>and <em>foundation_share </em>are planned to be set to 0%, so 100% of emission will initially be going to validator pools. <strong>The</strong> f<strong>irst years will be the most attractive for Solana delegators representing an opportunity to increase the network share.</strong></p><p>With the development of staking derivatives it will be possible to generate additional yield on top of staking rewards.</p><hr><p><em>Special thanks to <a href="https://twitter.com/sciencethedata">Eric Williams</a> for valuable additions. Having trouble getting started? Please get in touch with a P2P representative by emailing [email protected] or ask for assistance in our <a href="https://t.me/P2Pstaking">Telegram chat</a>.</em></p><hr><h2 id="about-p2p-validator">About P2P Validator</h2><p>P2P Validator is a world-leading non-custodial staking provider <strong>securing more than one billion USD value from over 5000 delegators across 15+ top-notch networks</strong>. We are early investors in Solana and have supported the network from the first block taking part in all stages of testing and voting.</p><hr><p><strong>Web</strong>: <a href="https://p2p.org">p2p.org</a><br><strong>Stake SOL with us</strong>: <a href="https://p2p.org/solana">p2p.org/solana</a><br><strong>Twitter</strong>: @p2pvalidator<br><strong>Telegram</strong>: <a href="https://t.me/P2Pstaking">t.me/P2Pstaking</a></p>

Alex Bond

from p2p validator

Solana Stake Solana (SOL) with SolFlare Wallet and Ledger Nano

<p>In this step-by-step guide, we'll walk you through how you can stake your Solana (SOL) using Solflare Wallet and Ledger Nano S/X. </p><p>To start contributing to the security of the <a href="http://p2p.org/solana">Solana Network</a>, you'll need to follow these simple steps:</p><ul><li>Install the Solana App on Ledger.</li><li>Access your wallet on Solflare wallet.</li><li>Create a staking account.</li><li>Stake your SOL.</li></ul><h3 id="step-1-install-the-solana-app-on-ledger">Step 1. Install the Solana App on Ledger </h3><p>First of all, download the Ledger Live app on your device and connect the Ledger device. In Ledger Live, via Manager, search for <em>Solana</em> in the App catalog. Click on “Install” after. </p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/12/image-6.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/12/image-6.png 600w, https://economy.p2p.org/content/images/size/w1000/2020/12/image-6.png 1000w, https://economy.p2p.org/content/images/size/w1600/2020/12/image-6.png 1600w, https://economy.p2p.org/content/images/size/w2400/2020/12/image-6.png 2400w" sizes="(min-width: 720px) 720px"></figure><blockquote><em>At the moment of writing the latest version of Solana application is v1.0.2. If you have an older version make sure to update it to v1.0.2.</em></blockquote><p>If all settings are correct, you are ready to start using Solflare.</p><h3 id="step-2-connect-your-ledger-to-solflare-wallet">Step 2. Connect your Ledger to Solflare wallet</h3><p>Go to <a href="http://solflare.com">Solflare.com</a> and click "Access" button.</p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/12/image-11.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/12/image-11.png 600w, https://economy.p2p.org/content/images/size/w1000/2020/12/image-11.png 1000w, https://economy.p2p.org/content/images/size/w1600/2020/12/image-11.png 1600w, https://economy.p2p.org/content/images/size/w2400/2020/12/image-11.png 2400w" sizes="(min-width: 720px) 720px"></figure><p>Choose “Using Ledger Nano S/X” and click “Access Wallet”.</p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/12/image-13.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/12/image-13.png 600w, https://economy.p2p.org/content/images/size/w1000/2020/12/image-13.png 1000w, https://economy.p2p.org/content/images/size/w1600/2020/12/image-13.png 1600w, https://economy.p2p.org/content/images/size/w2400/2020/12/image-13.png 2400w" sizes="(min-width: 720px) 720px"></figure><p>Open the Solana App on your Ledger and connect your device. Choose the derivation path one available option (Solana — 44'/501'/) and select your address in the bottom drop-down section.</p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/12/image-14.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/12/image-14.png 600w, https://economy.p2p.org/content/images/size/w1000/2020/12/image-14.png 1000w, https://economy.p2p.org/content/images/size/w1600/2020/12/image-14.png 1600w, https://economy.p2p.org/content/images/size/w2400/2020/12/image-14.png 2400w" sizes="(min-width: 720px) 720px"></figure><p>Click the “Access” button and approve this on your Ledger device to successfully enter your account.</p><figure class="kg-card kg-image-card"><img src="https://lh3.googleusercontent.com/BJP3JyzS69tTjton2scQm4_Zw6wzTuMSAENUpOLbAuMVERj3FdnMDLvIvgXPWcvwFBgTC5TON7-lL1x_Gg5Ozc8XRVFl3PtNDGIiFbFvqJv4ckLU0qSaXzoSkf929IF7T1xDNpTp" class="kg-image" alt></figure><p>After successfully completing the steps above, you will find yourself in the main menu of Solflare where you will find information about your wallet account address, your balance, and your most recent transactions.</p><h3 id="step-3-create-a-staking-account">Step 3. Create a staking account</h3><p>To Create a staking account you can either press “Get started” or select the “Staking” tab and then click on “Create Account”.</p><figure class="kg-card kg-image-card"><img src="https://lh4.googleusercontent.com/v_KZahtqgV-AwKEA4DRl3zRL-HwDxILh5rf6GAOn841K_mNiTCthm7ZTgiyY6HgO9IDm9zB_FaD8Oq5asqy6Gk9M81stlVCqNrwrPpq_FgYLYRtEop06MuNp4PQuu8-K2Bxx_wUU" class="kg-image" alt></figure><p>Choose the amount you want to transfer from your Wallet Account to your Stake Account  and click “Next”.</p><figure class="kg-card kg-image-card"><img src="https://lh6.googleusercontent.com/HAeesA6PGdmd8Tb6rxndgw5zKjg4XOFtFr78HfZTHjS-ObzhM0jTIXbgej5-Vg9dcpuyLYB-lFF0KEWyc18Ltq1VjuhRlUDfDMPFO5VeqUqHGkayT6mrSaEuCNpJaTVsNbJ-twiP" class="kg-image" alt></figure><blockquote><em><em><em>Leave some SOL in your wallet to pay </em></em>for <em><em>transaction fees. Since they are very low at Solana, leaving ~1 SOL in your wallet in your account should be more than enough.</em></em></em></blockquote><p>Confirm the transaction on your Ledger device.</p><figure class="kg-card kg-image-card"><img src="https://lh4.googleusercontent.com/420admtxlIbPR_rQjlzokNDZa1OiRqTc2g9r8Mq6V5_c5TUNlR9C7uWlgDv9TkAwJoz8gGbElTp_7EHjPY82NQzEdqDHhtWQqYUoX6PERNubj2nagQj5NrF-LOf6PxV1gVM2suej" class="kg-image" alt></figure><p>This ends the creation of the Solana staking account. You can see all of those on the main menu of Solflare. </p><p>Now you're ready to stake!</p><h3 id="step-4-stake-your-sol">Step 4. Stake your SOL</h3><p>On the Solflare main screen, you'll see all the accounts and balances you have created. To start staking your SOL tokens, select the related staking account and click the "Delegate Now" button.</p><figure class="kg-card kg-image-card"><img src="https://lh5.googleusercontent.com/Xka_XwlQHjJ_3O4QzkOFXJYpX_tPBaDStVM4GtmBGB_656tUpUzuvbO9BLwpepVpui_0tqNHBJ3nfokjrYG44su0B58S4zRHA5t4t7c2OI4tOrdIZZpvyxGtdhL_BCd_i9O5__r_" class="kg-image" alt></figure><p>In the window that opens, select P2P.ORG - P2P Validator and click “Next” button.</p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2021/02/image.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2021/02/image.png 600w, https://economy.p2p.org/content/images/size/w1000/2021/02/image.png 1000w, https://economy.p2p.org/content/images/size/w1600/2021/02/image.png 1600w, https://economy.p2p.org/content/images/size/w2400/2021/02/image.png 2400w" sizes="(min-width: 720px) 720px"></figure><p>You will have to verify and confirm your delegation on your Ledger device. Navigating to “Approve” screen, then confirm by pressing both buttons on the device.</p><figure class="kg-card kg-image-card"><img src="https://lh5.googleusercontent.com/vXjK7l8pxaL6cC1LDNXGd41Wsyi25OCesBlrFWP4xE0mNMTRzM-ja0m06FSHxJOH6rsUyrJYbqomyGQ8i-Emj8Zq4RSDkt5un2hYhGwCg6J79AwqBxxRjAMsBRf4YjMWk4o8F7nk" class="kg-image" alt></figure><p>Some points worth noting:</p><ul><li><strong>Warm-up period</strong> (time until your stake starts earning rewards): ~2 days.</li><li><strong>Cool-down period</strong> (time for your stake to become liquid after you stopped staking): ~ 2 days.</li><li>The network is expected to launch with an annual emission of 15%. It will decrease by 15% every year until reaching 1-2% and 90% of these SOL will be distributed amongst validators and delegators.</li></ul><hr><p><strong>If you have any questions, feel free to ask in our <a href="https://t.me/P2Pstaking">Telegram chat</a></strong></p><hr><h3 id="about-p2p-validator">About P2P Validator</h3><p>P2P Validator is a world-leading non-custodial staking provider securing more than $350 million from over 4,000 delegators across 25+ top-notch networks. We were early investors in Solana and have supported the network from the first block, taking part in all stages of testing and voting.</p><p><br><strong>Web</strong>: <a href="http://p2p.org/?utm_source=blog&amp;utm_campaign=sol_guide">p2p.org</a><br><strong>Stake</strong> <strong>SOL</strong> <strong>with</strong> <strong>us</strong>: <a href="http://p2p.org/solana?utm_source=blog&amp;utm_campaign=sol_guide">p2p.org/solana</a><br><strong>Twitter</strong>: <a href="https://twitter.com/P2Pvalidator">@p2pvalidator</a><br><strong>Telegram</strong>: <a href="https://t.me/P2Pstaking">t.me/P2Pstaking</a></p>

Paul P

from p2p validator

Solana, Serum P2P Validator Joins Serum Project as a Node Operator

<p>This year has been marked by the surge of decentralized finance (DeFi) and rise of a value locked through Uniswap - an automated market maker. Despite this, notable limitations like slow transaction processing, a spike in gas prices and the absence of trustless cross-chain swaps still exist, aggravating user experience.</p><p>Serum is going to eliminate these limitations of DeFi space. It is a <strong><strong>trustless decentralized exchange by design</strong></strong> built on top of Solana blockchain implying low latency and high transaction speed. Serum has <strong><strong>cross-chain support</strong></strong> and does not rely on centralized price feeds. <strong><strong>It is fully interoperable with Ethereum ecosystem</strong></strong> and provides the same trading experience that users get on centralized platforms by being the first high-throughput exchange that has a fully <strong><strong>on-chain orderbook and matching engine</strong></strong>.</p><p>Due to impressive performance qualities <strong><strong>Serum can become a foundational block for DeFi</strong></strong>.</p><p><em><em>With that in mind, P2P Validator is thrilled to announce the launch of Serum node with the mission of fostering DeFi growth and supporting censorship-resistance of value exchange.</em></em></p><p>Our team has extensive experience in setting up secure infrastructure. <strong><strong>P2P Validator maintains high-availability nodes and provides secure staking services for the most groundbreaking projects in the blockchain space</strong></strong>. We are an early Solana investor and active contributor operating a robust validator for mainnet beta. The node infrastructure is under advanced monitoring with 24/7 technical support, backups and alerts.</p><h3 id="about-serum"><strong>About Serum</strong></h3><p><a href="https://projectserum.com/">Serum</a> is a trustless decentralized exchange that enables seamless cross-chain trading and outstanding user experience. It allows fast order placement and on-chain order matching overcoming existing limitations in the space. It was founded by a group including team members from<a href="https://ftx.com/"> FTX</a> and<a href="https://www.alameda-research.com/"> Alameda Research</a> supported by advisors from Compound, BitMax, TomoChain and other notable projects. The list of partners include: Aleph.im, BitMax, FTX, Kyber Network, Leminscap, Multicoin Capital and many other well-established companies.</p><p>Learn more by visiting the<a href="https://projectserum.com/"> Serum Project website</a>,<a href="https://twitter.com/ProjectSerum"> Twitter</a> or<a href="https://t.me/ProjectSerum"> Telegram</a>. To discover Serum ecosystem visit<a href="https://serum-academy.com/en/"> Serum Academy</a>. If you’re a developer, read a technical<a href="https://docs.google.com/document/d/1isGJES4jzQutI0GtQGuqtrBUqeHxl_xJNXdtOv4SdII/edit#"> introduction to Serum</a> and join the discussion on<a href="https://discord.com/invite/MxZFT4v"> Discord</a>.</p><h3 id="about-p2p-validator"><strong>About P2P Validator</strong></h3><p><a href="https://p2p.org/?utm_source=blog&amp;utm_campaign=serum_intro">P2P Validator</a> is a world-leading staking provider with the best industry security practices and proven expertise. We provide comprehensive due-diligence of digital assets and offer only top-notch staking opportunities. At the time of publishing, <strong><strong>more than 200 million of USD value is staked with P2P Validator by over 2000 delegators across 15+ networks.</strong></strong> We are early Solana investors and contributors having a goal to provide the long term support for the ecosystem.</p><hr><p><strong><strong>Web:</strong></strong><a href="https://p2p.org/?utm_source=blog&amp;utm_campaign=serum_intro"> https://p2p.org</a></p><p><strong><strong>Twitter:</strong></strong><a href="https://twitter.com/p2pvalidator"> @p2pvalidator</a></p><p><strong><strong>Telegram: </strong></strong><a href="https://t.me/P2Pstaking">https://t.me/P2Pstaking</a></p>

Alex Bond

from p2p validator