Solana
Staking
APY
MEV
Staking Risks
Average Solana Staking Yields: 2025 Mid-Year Outlook & Forecast
Mid-year analysis of Solana staking yields (native & liquid), risk assessment, network strengths, and insights on proposals affecting future staking yields for 2025.
Reading Time: 6 minutes
Solana has established itself as a leading proof-of-stake network, offering competitive returns without the slashing risks found in other major blockchain networks. Solana presents a compelling staking opportunity for both retail and institutional participants.
Key findings you'll discover:
- APYs for Solana native staking—including rewards from Jito MEV—vary widely, ranging from 0% up to nearly 8% at current market conditions, depending on validator performance and commission.1
- The main drivers behind the variability in liquid staking APYs.
- Why Solana does not implement slashing, contrary to widespread misinformation.
- A risk assessment for Solana staking.
- Solana’s strengths and performance metrics that explain its standout position in proof-of-stake networks.
- Factors that influence staking success and long-term sustainability.
- Proposals under consideration that could impact staking yields.
Solana Staking Rates
Understanding Solana’s native staking rates involves recognizing base inflation rewards and Maximum Extractable Value (MEV) as primary drivers of returns for delegators within the network’s economics.
Inflation-based Yields
APY derived from Solana’s inflationary rewards represents the predictable, protocol-defined return earned by individual stakers. These rewards are issued at the beginning of each epoch based on output during the previous one, and are governed by Solana’s current inflation rate alongside its reward distribution mechanics. In the current market conditions—where the inflation rate continues to drop and more staking options are available—this base APY remains a reliable and transparent source of yield for those delegating SOL natively. It serves as the core component of staking income and offers a consistent benchmark for evaluating validator performance and making informed staking decisions.
MEV's Impact on Returns
Validators running the Jito-Solana client earn additional APY by capturing Maximum Extractable Value (MEV)—which comes from searchers submitting transaction bundles and priority fees to achieve advantageous ordering within blocks, benefiting operators with advanced MEV extraction capabilities. This approach has resulted in a significant yield boost; during periods of high network activity, validators have observed approximately 30% higher total returns, with delegators potentially gaining an APY increase from 1 to 4 percentage points.
| Metric | Value | Practical Implications |
|---|---|---|
| MEV contribution to total returns | Approximately 14%, 20-30% during high activity2 | Shifting reward composition toward performance-based yield |
| Validators using MEV-enabled clients | 92% of Solana's total stake weight (as of January 2025)3 | Reflects near-universal adoption; non-MEV validators may struggle to stay competitive |
As Solana gradually reduces its inflation rate over time, MEV-derived yields are becoming an increasingly important component of overall staking returns. Any APY calculation excluding these rewards may understate actual returns for validators utilizing MEV-enabled infrastructure.
APY Rates from Different Validators
| Validator | Base APY | Jito MEV APY | Total APY | Other Features |
|---|---|---|---|---|
| Starke Finance | 6.82% | 0.65% | 7.47% | Total Stake: 369,964 SOL Commission: 0% Skip Rate: 0% Voting Rate: 99.5% |
| Binance | 6.67% | 0.59% | 7.26% | Total Stake: 13,133,427 SOL Commission: 2% Skip Rate: 0.2% Voting Rate: 99.4% |
| Figment | 6.38% | 0.61% | 6.99% | Total Stake: 9,419,595 SOL Commission: 7% Skip Rate: 0% Voting Rate: 99.4% |
| Coinbase 02 | 6.18% | 0.60% | 6.78% | Total Stake: 6,358,011 SOL Commission: 8% Skip Rate: 0% Voting Rate: 99.4% |
| Kraken | 0% | 0% | 0%* | Total Stake: 2,756,841 SOL Commission: 100% Skip Rate: 0% Voting Rate: 99% |
Source: Stakewiz, Stake Finance. On-Chain native APY based on a 10-epoch median (As of Epoch 830, August 7-9, 2025)
*Note: On the Solana network, validators with high commission fees may have APYs that appear significantly lower, even reaching 0%. This setup is common in private validators but also in validators managed by centralized platforms, which collect staking rewards and redistribute them internally based on their own payout models. For example, Kraken’s Solana validator shows 0% APY on-chain, but users staking through Kraken’s platform can still earn up to 10% APY.4 Nonetheless, the yield offered this way is generally lower than what you’d earn through native staking by delegating directly to independent validators with competitive commissions and strong performance metrics.
LSTs
More than 86% of staked SOL is delegated natively, while 14% is staked through liquid staking providers.5 The APYs from liquid staking can vary—sometimes exceeding native APYs and other times falling short—depending on factors such as underlying native rewards, how the protocol manages validator delegation and fees, and the market valuation of the liquid staking token.
Popular LSTs by APY
| Validator | Token | Native APY | Liquid APY | Total Staked |
|---|---|---|---|---|
| Starke Finance | rkSOL | 7.47% | 8.03% | 0.10 M SOL |
| Binance | BNSOL | 7.26% | 5.92% | 10.31 M SOL |
| Helius | hSOL | 7.46% | 7.06% | 0.56 M SOL |
| Jupiter | JupSOL | 7.53% | 7.84% | 6 M SOL |
Sources: Stakewiz, Starke Finance, Sanctum. On-Chain APY based on a 10-epoch. (As of Epoch 830, August 7-9, 2025)
Staking Risk Analysis
Technical Risk Assessment
Slashing Reality: The Critical Correction Solana official documentation explicitly states there is no slashing implementation currently.6 This directly contradicts widespread misinformation and represents a key advantage over networks like Ethereum, Polkadot, and Cosmos.
Instead of slashing, Solana uses performance-based reward adjustments where underperforming validators receive reduced rewards proportional to their vote credits and skip rates, but delegated stake is never at risk of confiscation.
Actual Risk Factors
| Risk Category | Delegator Impact |
|---|---|
| Principal Loss | No systemic risk identified. Wallet hacking and drainers |
| Validator Performance Penalty | Rewards drop proportionally during downtime |
| Unbonding Period | 2-3 days (one epoch)7 |
| Commission Fee Variability | Sudden fee hikes reduce expected returns |
| Systemic Failure | Network disruption or protocol issues threaten staked SOL value or accessibility |
Solana Network Overview
Network Performance Metrics
| Metric | Current Value | Outcome |
|---|---|---|
| Network Uptime | 100% for extended periods | Ensures continuous transaction processing |
| Replay Time | Below 400 ms | Efficient transaction validation and low latency |
| Daily Transactions | Up to 200 M | High throughput and scalability |
| Liquidity Inflows | Over $200M | Strong token liquidity and engagement |
| DEX Volume | As much as $39B/day | Significant trading activity |
| Active Validators | Approximately 1,000 | Better network resilience and lower risk of failure |
| Nakamoto Coefficient for Voting Power | 22 | Strength of decentralization and security |
| Geographic Distribution | 40 countries, 100+ data center providers | Reduced risk from geopolitics, natural disasters, and corporate reliance |
Source: Solana, Blockworks
Solana's Competitive Position
Solana offers several advantages in the proof-of-stake landscape:
- No slashing implementation: Unlike many other major PoS networks, Solana does not penalize staked funds for validator misbehavior.
- Short unbonding period: Funds can be unstaked within ~2 days.
- Low barrier to entry: No minimum staking amount; simple delegation process.
- Competitive yields: Driven by its high network performance and low operational risks.
- Enhanced Liquidity: Multiple liquid staking options without lock-ups.
Staking Strategy Considerations
Validator Choice Framework
| Step | Action | What to look for |
|---|---|---|
| #1 — Define Your Staking Goal | Choose your staking priority | Maximum earnings, long-term safety, support the ecosystem, diversification, etc. |
| #2 — Gather Validator Data | Use Solana explorers (Solana Beach, Validators.app, Stakewiz) | APY, commission rate, skipped slots, uptime, voting rate |
| #3 — Check Reputation & Transparency | Verify validator legitimacy and community presence | Social activity, website, team identity, published performance reports, legal compliance |
| #4 — Evaluate Risks | Assess operational reliability and fee history | Frequent downtime, misbehavior reports, sudden commission hikes |
| #5 — Test with Small Stake | Stake a small amount and monitor 1–2 epochs | Consistent rewards, timely payouts, validator responsiveness before increasing stake |
Platform Selection Factors
| Strategy Goal | Recommended Approach | Considerations |
|---|---|---|
| Maximum Yields | Research high-performing validators with low commission | Requires due diligence and ongoing monitoring |
| Comfort | Use established staking services | May have fees; possible lower APY |
| Security & Reliability | Choose validators with proven uptime and low skipped slots | Check historical performance data |
| Diversification | Spread stake across multiple validators | Reduces concentration risk; more management required |
| Decentralization Support | Stake with smaller or emerging validators | Higher uncertainty due to limited track record; evaluate transparency, technical competence, and community trust |
| Alignment & Values | Select validators aligned with your values (e.g., community engagement, open-source contributions) | Requires subjective judgment; verify claims where possible |
Performance Monitoring Metrics
| Metric | Measurement | Stakeholder Effects |
|---|---|---|
| APY | Staking rewards | Potential earnings from staking |
| Skip Rate | Percentage of slots missed by validator | Higher skip rate means less reliability and reduced rewards |
| Vote Credits | Number of votes a validator has signed | Reflects active participation in consensus and reward eligibility |
| Commission | Fee percentage taken by validator | Greater fees reduce net staking returns |
| Infrastructure Quality | Validator’s hardware and network reliability | Better quality means fewer outages and more stable rewards |
| Uptime | Percentage of time validator is online and actively voting | Consistent uptime ensures steady reward accumulation |
| Stake Size | Amount of SOL delegated to the validator | Larger stake can increase reward share; doesn't affect individual rewards directly |
Upcoming changes to look out for in the future
Several key developments are expected to impact staking rewards on the Solana network:
- Validator Reward Distribution: SIMD-123 aims to allow validators to set a block reward commission and share part of their block revenue with delegators. If approved, this would enable more transparent and consistent reward distribution, potentially affecting overall staking yields.8
- Emissions Curve Adjustment: A proposal (SIMD-0228) to adjust inflation based on staking participation was rejected due to concerns about its impact on validator incentives and network security. As a result, inflation remains around 4% per year, keeping staking yields stable. However, similar proposals might be considered again in the future.9
- Slashing: Ongoing debate around implementing a slashing mechanism (e.g., SIMD-204). If adopted, this would introduce penalties for validator misbehavior, impacting network security and staking dynamics.10
- Alpenglow Upgrade: A major update aiming to shorten block times and enhance network stability.11
Stakers should monitor these developments closely, as they could significantly influence staking rewards in the coming months.
Sources
- Stakewiz — Solana validator metrics
- Solana validator and staking landscape
- Solana network health report: June 2025 — Validator Agave/Jito implementations
- Kraken — Solana staking
- Blockworks — Solana supply, staking, and validators
- Solana documentation — Staking on Solana
- Solana architecture — Stake delegation and rewards
- Proposal for an in-protocol distribution of block rewards to stakers
- Proposal for introducing a programmatic, market-based emission mechanism based on staking participation rate
- Solana network health report: June 2025 — Slashing
- Solana network realth report: June 2025 — Alpenglow upgrade
Contributors
Linh NguyenCommunication Manager