Key Highlight

      Staking Luna Returns Circulating Supply
      • Luna is getting rapidly burnt due to increase in UST demand
      • Earning 9% on a deflationary asset is pushing the effective return up to 250% as of the time of writing this

      See up to date staking data on the Luna Staking Reward Page

      Use our Luna Advanced Staking Calculator

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      Everything you need to know about staking LUNA

      Terra’s native token, LUNA, is used to vote on governance proposals and to collateralize the UST stablecoin. UST is an algorithmic stablecoin pegged to the value of USD. Whenever a user wants to mint UST, they need to burn an equivalent amount of LUNA, this back and forth system forms the basis of the demand and supply of LUNA. By the end of this staking guide, you will know the ins and outs of how to stake LUNA on the non-custodial Terra Station Wallet and be on your way to set up another stream of passive income. If you want to better calculate how much you can earn from staking LUNA, check out our LUNA Staking Calculator.

      What you need to stake LUNA

      • Terra Station Wallet(Step 1)
      • Enough funds to cover fees, roughly 0.007 LUNA or 0.1 UST

      Step 1 – Downloading the Terra Station Wallet for staking Luna

      Downloading the terra Station wallet for Luna Staking
      1. Click on the Learn dropdown at the top of the screen.
      2. Then depending on your operating system, click on the download “Windows Wallet” or “MacOS”.
      3. Import your Terra Wallet using an existing Terra seed phrase or set up a new Terra Wallet.

      Step 2 – Sending LUNA to your Terra Station Wallet

      1. You can copy your Terra Station Wallet address to your clipboard by clicking on the copy button at the top of the screen.
      2. Then you can check that your LUNA has arrived by clicking on Wallet and seeing your balance.
      Sending Luna to your Terra Station Wallet for Luna Staking

      Step 3 – Staking LUNA to a Validator

      Staking Luna with a Validator
      1. Click on the Staking tab on the left-hand side.
      2. Then select your preferred Validator.
      3. Next, you will have to click on the Delegate button.
      4. You will then have to input how much LUNA you want to stake and confirm.


      When users stake their LUNA, they secure the network and get paid a portion of the swap fees between LUNA and UST. In addition, it qualifies to receive airdrops from many Terra Ecosystem projects. Delegators of Luna can on average earn up to 8.5% APR on their LUNA.
      Furthermore, as the demand for UST goes up, LUNA is burnt which makes LUNA deflationary, adding to the user’s return. Ultimately, staking LUNA allows users to earn passive income on a deflationary token, quite an attractive prospect compared to the sub 0.5% interest rate in savings accounts.

      About The Author

      Abishek Y Kannan

      is a Research Analyst at Staking Rewards and covers the asset data integrations on the platform. He has been in the crypto space since 2019 besides his role at Staking Rewards, he is studying actuarial studies at UNSW. Abishek is a crypto enthusiast who loves exploring the novel ways of blockchains to make the world a better and more efficient place.