Hedera is the open source, leaderless proof-of-stake network powering the next generation of the web. Hedera’s robust ecosystem is built by its global developer community, on a network governed by a decentralized Governing Council of industry-leading web3 projects, enterprises, and higher education institutions.
Hedera offers developers and retail users the ability to use, build, and deploy decentralized applications using EVM-based smart contracts, as well as native tokenization and decentralized logging services.
The token that powers the Hedera network is HBAR and it is exclusively used for paying network transaction fees, staking to validator nodes, and trading. This tutorial will show you how to stake your HBAR tokens on the Hedera network.
TL;DR
- View the current HBAR staking APR here
- Use the HBAR Staking Calculator to estimate your rewards
- Lockup: No lockup
- Average commission: –
- Minimum amount required for staking: No minimum
- Estimated time needed to stake your HBAR in your wallet: 3 minutes
- Recommended HBAR staking wallets: Ledger, HashPack, Blade, Stader
- Steps to stake:
- Step 1: Open your HashPack wallet and make sure your HBAR is stored in this wallet address.
- Step 2: Click on “Stake” and then click the “Stake your HBAR” button.
- Step 3: Select a node from the drop down list, make sure not to choose a node with the “Oversubscribed” tag.
- Step 4: Confirm and sign the transaction.
Prerequisites
Where to buy HBAR
You can get HBAR tokens at a cryptocurrency exchange, at a decentralized exchange, or within select wallets using a bank card. You should always do your own research when selecting a reputable cryptocurrency exchange. For best security, it is not recommended to leave your tokens on an exchange but, instead, transfer them to your non-custodial or cold/hardware wallet after procuring them.
Hedera wallets
Updates to StakingRewards.com
Hedera has a variety of non-custodial wallets for you to choose from; we recommend that you use a hardware wallet, such as Ledger, as this is the most secure.
Selecting Hedera nodes
Please refer to the FAQ section titled ‘How do I choose Hedera nodes on this page when selecting Hedera nodes.
How Staking Rewards for Hedera (HBAR) are Generated
The staking reward account (mainnet account 0.0.800) is the account that will distribute rewards. This account can be funded by anyone who chooses to donate and will distribute rewards to those staking once it reached the minimum threshold of 250M HBAR. The HBAR Foundation donated HBAR to account 0.0.800 to help it reach the minimum threshold but is not and may not be the only entity that donates to that account. A total of 1 billion HBAR is currently distributed for staking rewards per annum, as voted by the Hedera Governing Council’s “Coin Committee”. In the future, rewards are generated via a portion of all transaction fees on the network contributing to the 0.0.800 account, which is then distributed to staking participants.
How to Stake Hedera (HBAR)
Step 1: Make sure you have a HashPack wallet
As a popular wallet in the Hedera ecosystem, HashPack offers users the ability to stake tokens, access Hedera web3 dapps, and manage various fungible and non-fungible tokens in a single wallet.
Install the HashPack browser extension and deposit your tokens into the account managed by this wallet before continuing on to step 2.
Step 2: Open your HashPack wallet and start staking
After opening your wallet, follow the steps below to get started:
- Make sure you have deposited your HBAR into your HashPack wallet.
- Click on the “Staking” tab
- Click the “Stake your HBAR” button
Step 3: Choose a node in which to stake HBAR
- Select a node by clicking on its name
- Click ‘Stake’
- Confirm the transaction
Please note:
- Do not stake with a node that has the ‘Overstaked’ tag, it will result in you not earning any rewards.
- Keep in mind that your full balance is automatically staked
- Your funds are fully available to be used while they are staked
- You can unstake and switch nodes freely
- You may need to wait up to 48 hours before you start earning rewards
- Staking Rewards are automatically collected whenever you do a transaction
Congratulations! You have now staked your HBAR tokens and will start earning those juicy staking rewards.
Step 4: Track staking portfolio
- Track your HBAR staking rewards on the the ‘Staking’ tab on HashPack.
- Monitor governance proposals on Hedera network that may impact the staking mechanism.
- Updates to StakingRewards.com
- Track the current and historical reward rates, validator count, number of unique Hedera staking wallets, and the staking ratio of the Hedera network by visiting the Hedera asset page.
Conclusion
Staking is essential to Proof-of-Stake blockchains and comes with many benefits for investors and the network:
- Investors earn yield from token emissions and/or transaction fees.
- Stakers become eligible for airdrops as many networks prioritize granting these benefits to them.
- Staking helps to secure the network
- Staking from multiple participants helps decentralize the network
- Stakers can participate in governance, as many PoS networks allocate governance rights based on the amount of tokens staked.
Congratulations! You are now not only getting the most out of your investment with compounded returns. YOU are also (in-)directly contributing to the decentralization, and the network security of Hedera and thus contributing to the long-term success of your investment! Hedera needs active stakers like you to become successful long-term.
Now share the tutorial with your friends so they can get to start staking as well!
Lastly, don’t forget to check out the Hedera (HBAR) asset page for more insights into staking HBAR, and drop us a message if you found this tutorial useful. Happy staking!