A Beginner's Guide to Cardano Staking
If you're new to Cardano and wondering how to put your ADA to work, you're in the right place. Staking is one of the most powerful features of the Cardano blockchain, allowing you to earn rewards while helping secure the network. Best of all, it's designed to be safe, simple, and accessible to everyone.
What is Staking?
Cardano uses a proof-of-stake consensus mechanism called Ouroboros. Unlike Bitcoin's energy-intensive mining, Cardano selects block producers based on the amount of ADA "staked" in the network. When you stake your ADA, you're essentially voting for a stake pool to produce blocks on your behalf.
In return for participating, you earn staking rewards - typically around 3-5% annually. These rewards come from transaction fees and a small amount of newly minted ADA in each epoch (a 5-day period on Cardano).
Choosing a Wallet
Before you can stake, you'll need a Cardano wallet. Here are the most popular options:
Browser Wallets
- Eternl - A feature-rich light wallet with excellent staking features.
- Lace - IOG's light wallet with a clean, modern interface.
- Nami - Simple and lightweight, great for beginners.
Mobile Wallets
Desktop Wallets
- Eternl - Also available as a desktop application.
- Daedalus - The official full-node wallet from IOG. Downloads the entire blockchain for maximum security.
All of these wallets support staking and are non-custodial, meaning you always retain full control of your ADA.
How Staking Works
Here's what happens when you delegate your ADA:
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You choose a stake pool - Stake pools are servers run by operators who produce blocks for the network.
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You delegate your stake - This is a simple transaction that registers your wallet's staking key with your chosen pool.
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Your ADA never leaves your wallet - This is crucial. Delegation is not a transfer. Your ADA stays in your wallet, fully accessible at all times.
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The pool produces blocks - Based on the total stake delegated to the pool, it gets selected to produce blocks.
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Rewards are distributed - Every epoch (5 days), rewards are calculated and distributed to delegators proportionally.
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Rewards compound automatically - Your rewards are added to your delegated stake, earning you more rewards over time.
What Makes Cardano Staking Safe and Secure
Cardano's staking mechanism was designed with security as a top priority. Here's what makes it unique:
Your ADA Never Leaves Your Wallet
Unlike many other blockchains where staking requires locking or transferring your tokens, Cardano delegation is purely a voting mechanism. Your ADA remains in your wallet, under your control, at all times. You can spend, send, or move your ADA whenever you want - there's no unbonding period.
No Slashing
On some proof-of-stake networks, misbehaving validators can cause delegators to lose a portion of their staked tokens (called "slashing"). Cardano has no slashing mechanism. If a stake pool misbehaves or goes offline, the worst that happens is you miss out on some rewards. You never lose your principal.
Decentralized and Permissionless
Anyone can run a stake pool, and anyone can delegate. There are no minimum amounts required to stake - even 1 ADA can be delegated. This keeps the network decentralized and accessible.
Mathematically Proven Security
Cardano's Ouroboros protocol is the first proof-of-stake protocol with mathematically proven security guarantees. It's been peer-reviewed and published in academic conferences.
Transparent Rewards
All stake pools are visible on-chain, and their performance is publicly auditable. You can see exactly how many blocks a pool has produced and what rewards have been distributed.
How to Start Staking with Sandstone
Ready to start earning rewards? Here's how to delegate to Sandstone:
Step 1: Set Up Your Wallet
Download and install one of the wallets mentioned above. If you're new, we recommend Eternl for its balance of features and ease of use.
Step 2: Transfer ADA to Your Wallet
Purchase ADA from an exchange and withdraw it to your wallet address. Make sure to keep a small amount (around 2-3 ADA) for transaction fees.
Step 3: Find Sandstone
In your wallet's staking section, search for SAND or use our pool hash:
40183423c226189d508db4b21bf94b790cf4d096134a9afbc2bd5318
Step 4: Delegate
Click delegate and confirm the transaction. You'll pay a small transaction fee (around 0.17 ADA) plus a 2 ADA deposit that's returned if you ever stop staking.
Step 5: Wait for Rewards
Rewards start appearing after 15-20 days (3-4 epochs). After that, you'll receive rewards every 5 days automatically. No need to claim them - they're added to your wallet balance and compound automatically.
Why Delegate to Sandstone?
Sandstone is operated by a professional team of engineers with extensive experience in distributed systems. Our infrastructure runs on AWS across three availability zones, architected for high availability, zero downtime, and maximum performance.
We're committed to the long-term health of the Cardano network and offer competitive fees while maintaining reliable block production.
Questions?
Staking should be simple and stress-free. If you have any questions about delegating to Sandstone, reach out to us on X or Telegram.
Happy staking!