Sui utilizes a Delegated Proof-of-Stake (DPoS) system to secure and operate the network. In this system, validators gain voting power based on the amount of SUI tokens staked and delegated to them by token holders. The more stake delegated to a validator, the greater their voting influence. In exchange for processing transactions and executing consensus, validators earn rewards from transaction fees, which are then distributed as staking rewards to participants.
Staking
To stake your SUI tokens, you submit a transaction that calls the staking function in Sui’s system Move package. This transaction wraps the SUI tokens in a self-custodied staking object, which contains details such as the validator pool ID and the staking activation epoch. Following SIP-6, you can also use this staking object to participate in liquid staking protocols.
Most Sui-compatible crypto wallets offer built-in staking functionality directly from your address. Refer to your wallet’s documentation to begin staking SUI tokens.
Unstaking
Similar to staking, users initiate unstaking by submitting a transaction that calls the unstaking function in Sui’s system Move package. This transaction unwraps the staking object and returns the principal amount along with accumulated rewards as SUI tokens. Rewards are only earned if the stake remains active for the entire epoch. The amount withdrawn from the validator’s reward pool depends on the staking activation epoch and the unstaking epoch.
Choosing a Validator to Stake With
When staking on Sui, you must select a specific validator. Your choice can impact the amount of staking rewards you receive. Key factors influencing rewards include:
- Validator Commission Rate: Validators may set a non-zero commission rate, taking a percentage of staking rewards. For example, a validator with a 10% commission retains 10% of the staker’s rewards. Note that validators can adjust commissions without prior notice.
- Validator Performance: Poor-performing validators may face penalties under the tallying rule. Penalized validators forfeit rewards for the affected epoch, meaning unstakers also lose rewards for that period.
Sui-compatible wallets and blockchain explorers typically provide validator metrics such as commission rates and APY. Check these tools for detailed validator data.
👉 Learn more about maximizing staking rewards
FAQs
How does staking work on Sui?
Staking involves delegating SUI tokens to validators, who then participate in consensus and distribute rewards based on transaction fees.
Can I unstake my tokens at any time?
Yes, but rewards are only earned if the stake remains active for a full epoch.
How do I choose the best validator?
Consider factors like commission rates, historical performance, and uptime. Tools like Sui wallets and explorers provide this data.
What is liquid staking?
Liquid staking allows staked assets to be used in DeFi protocols while still earning rewards.
👉 Explore advanced staking strategies
By understanding Sui’s staking mechanics, users can optimize their rewards while contributing to network security.