Staking is the practice of actively engaging in transaction validation on a proof-of-stake blockchain (PoS) blockchain, which includes processing transactions and signing blocks (equivalent to mining). Anyone with a minimum necessary cryptocurrency balance can validate transactions and earn Staking rewards on these blockchains.
Binance Smart Chain makes use of a consensus methodology known as Proof of Staked Authority (PoSA). It’s a mix of Proof of Authority (PoA) and Delegated Proof of Stake (DPoS), with 21 community Validators processing transactions, providing computing power and hardware, and ensuring network security. They are compensated for their efforts through transaction fees and BNB staking. Each validator is a group that contains many delegators.
Should you become a validator or delegator on BSC?
Validators essentially power the BSC network by processing transactions and signing blocks. In the meantime, they also required daily re-election by staking governance to be able to continue to be part of the validator set.
It is needed to spin up a hardware node with required specs, run a full BSC node and stake a minimum of 10,000 BNB. However, the mentioned requirements are enough to be elected as a candidate.
Only the top 21 validators with the highest amount of voting power will actually start producing blocks.
As of 26 May 2021, the top 21 elected validators have more than 460,000 BNB staked.
Top 21 validators on BSC. 26th May 2020
It is right to say becoming a validator is not for everyone.
As a regular user, we can join to stake BNB to validator candidates through one of the supported wallets. At this point, we are Delegators. It means, many delegators will stake BNB to validator candidates. You can choose your preferred validator and help them achieve the minimum stake required by the protocol.
A Delegate can transfer part of their stake from a given validator to another validator, it is called redelegation. That means delegators can support more than one validator at the same time.
As we know, when a validator produces blocks, they will receive rewards in BNB. From here, validators will share a portion of their earnings with their delegators. As of writing, you may earn up to 22% in APY.
How to become a delegator?
If the validator needs at least 10,000 BNB plus hardware setup, delegator needs can start staking from only 1 BNB.
Here is step by step on how to become a delegator. In this article, we will introduce setting up on Trust Wallet. You may also use other wallets that support staking as a Delegator like Binance Chain Wallet, Math Wallet.
- Latest Trust Wallet on your device (iOS, android)
- At least 1 BNB.
Access BNB Staking Menu
Tap on More then on the pop-up menu, tap on Stake.
Choose a validator.
Tap on the arrow to see the list of active validators. You should choose a validator from the active list. if the chosen validator becomes inactive, you will stop receiving staking rewards.
Note: top 21 validators may change depending on the total BNB amount that they hold. Check the list of active validators here. https://www.binance.org/en/staking
Put in the amount of BNB you want to stake. Tap on next.
At the confirmation screen, tap on Send to complete the staking process.
Refresh your screen to see the Staking Status bar. Tapping on it will open up the Stake Details window. Congratulations, you are now a part of the BSC network.