How to Stake Solana
Staking Solana (SOL) has become one of the most attractive ways for UK investors to generate passive income while strengthening the blockchain ecosystem. With rewards ranging between 5.17% and 10% APY, staking offers significantly higher yields compared to traditional savings accounts. Thanks to recent regulatory clarity from the UK Treasury, it is now easier and safer for UK investors to stake Solana without the uncertainties that previously discouraged participation.
What Changed in UK Regulations?
The UK Treasury introduced an amendment to the Financial Services and Markets Act 2000 (FSMA), effective January 31, 2025, confirming that crypto staking is not classified as a collective investment scheme. Instead, staking is recognised as a blockchain validation activity, not a pooled investment product.
This clarity provides legal certainty for UK investors who want to stake SOL tokens. It ensures that staking is officially treated as a network participation activity rather than an investment scheme, making it more accessible and appealing for both retail and institutional investors.
Key Takeaways
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Staking rewards: 5.17% – 10% APY depending on validator and platform
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Regulatory clarity: UK Treasury recognises staking as validation, effective January 31, 2025
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Minimum requirement: As little as 0.01 SOL to start staking
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Taxation: Rewards are subject to UK income tax when received and capital gains tax when sold
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Staking types: Native staking through wallets or liquid staking via protocols
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Unstaking period: About 2 days for native staking on the Solana network
What is Solana Staking?
Solana staking is the process of delegating SOL tokens to validators who process transactions and secure the blockchain through the proof-of-stake (PoS) consensus mechanism. In exchange, delegators earn rewards distributed every epoch (about 2 days).
Currently, over 65% of Solana’s supply is staked, representing more than 353 million SOL valued at $62.9 billion. This high participation rate demonstrates strong community trust in the network’s security and efficiency.
Unlike traditional bank deposits, staking rewards come from network inflation and transaction fees. The annual inflation rate starts at 8%, reducing by 15% each year, which gradually decreases future rewards. Validators take a small commission, but most of the yield goes directly to delegators.
Why Should UK Investors Stake Solana?
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High Rewards: Potential returns of up to 10% APY, much higher than traditional savings accounts.
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Regulatory Certainty: UK law now recognises staking as a legitimate blockchain process.
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Accessibility: Start staking with as little as 0.01 SOL, making it easy for beginners.
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Passive Income: Earn rewards without specialised hardware, unlike proof-of-work mining.
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Ecosystem Growth: Support Solana’s expanding DeFi, NFT, and Web3 ecosystem while earning rewards.
Solana’s scalability is a major attraction — processing thousands of transactions per second. By staking, UK investors contribute to this growth while benefiting financially.
UK Tax Rules on Solana Staking
While regulations permit staking, tax obligations remain important:
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Income Tax: Rewards are treated as taxable income at the fair market value when received.
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Capital Gains Tax (CGT): Applies when you sell staked SOL, calculated as the difference between disposal and acquisition value.
Keeping accurate records of staking rewards and sale transactions is crucial for compliance. Tax treatment may vary depending on individual circumstances, so consulting a professional is recommended.
How to Stake Solana: Step-by-Step
There are two main methods: native staking and liquid staking.
Method 1: Native Staking
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Choose a Wallet – Download a Solana-compatible wallet (e.g., Phantom, Solflare).
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Fund with SOL – Transfer tokens from a UK-supported exchange into your wallet.
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Select a Validator – Review performance, commission rates, and reliability.
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Delegate SOL – Enter the amount (min. 0.01 SOL) and confirm delegation.
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Earn Rewards – Rewards begin after the next epoch (~2 days).
Native staking is ideal for investors who want direct blockchain participation and control over their delegation.
Method 2: Liquid Staking
Liquid staking allows you to stake SOL while retaining liquidity. Platforms like Marinade or Jito issue liquid staking tokens (LSTs) in return for your staked SOL. These LSTs can be traded, used in DeFi, or provided as collateral — all while continuing to earn staking rewards.
This method offers flexibility but comes with added smart contract risks, so investors should research each platform carefully.
Best Platforms for Solana Staking in the UK
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Phantom Wallet – Beginner-friendly, supports native staking
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Solflare Wallet – Advanced staking features with strong community support
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Marinade Finance – Popular liquid staking protocol with tradeable mSOL tokens
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Jito – Offers liquid staking with extra MEV rewards
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Major Exchanges (Coinbase, Binance, Kraken) – Convenient but may charge higher fees
Choosing the right platform depends on whether you prefer native staking security or liquid staking flexibility.
Final Thoughts
For UK investors, staking Solana is now a legitimate, rewarding, and accessible way to grow crypto holdings. With clear regulatory approval, attractive APY rates, and easy-to-use platforms, staking has become one of the most practical strategies for earning passive income in the crypto space.
Whether you choose native staking for simplicity and security or liquid staking for added flexibility, staking SOL ensures you contribute to Solana’s ecosystem while earning rewards. With as little as 0.01 SOL, UK investors can now confidently participate in one of the fastest-growing blockchain networks.
