The Binance Smart Chain (BSC) runs parallel to the original network, Binance Chain. The BSC provides smart contract functionality and compatibility with the Ethereum Virtual Machine (EVM) to enable developers to deploy their dApps fast and reliably.
BSC boasts 3 second block times by using a delegated Proof of Stake (PoS) and Proof of Authority (PoA) to maintain network consensus and blockchain security. Through this mechanism, participants must stake BNB to become validators and get rewarded with transaction fees.
The blockchain has 21 validators that are elected by BNB stakers every 24 hours. Anyone can be a candidate for election as a validator but only the top 21 highest-staked nodes will be chosen. Unlike most PoS chains, BNB is deflationary as the Binance team regularly burns a portion of the tokens.
BNB is Binance ecosystem’s token, used for transaction fees, staking, and asset transfers. The token has performed well over the past year due to an increased trading activity on the Binance platform and the launch of BSC, which has expanded the utility of the token in the DeFi ecosystem.
BSC was built to provide a scalable solution for users, a pain point that Ethereum still struggles with. BSC offers lower fees and faster transactions while providing Ethereum compatibility.
The Binance team continues to increase the utility of BNB and advance BSC as a scalable solution.
Why should I stake my BNB?
Staking is the process of locking up a digital asset (BNB) to provide economic security for a public blockchain. Therefore, staking your BNB helps secure the PoS Binance Smart Chain (BSC). Furthermore, by staking your BNB, you can participate in the BSC governance.
- Secure the network – With BNB, you have the power to contribute to the security of the network by enforcing reliable consensus practices.
- Earn rewards – When you stake to a validator, you are are rewarded with BNB as staking rewards.
- Vote for the future – Staking BNB allows you to vote on governance proposals and contribute to making decisions on the future and direction of the network.
What happens when I stake my BNB?
As Binance Smart Chain uses a PoS consensus mechanism, you can participate in securing the network by becoming a delegator or a validator. Validators on the Ethereum blockchain (and most other PoS blockchains) validate the network by approving transactions. The more BNB a validator holds the more powerful they are and the more "vote" the have in the network, which allows them to validate more transactions, thus earning more rewards.
How much can I earn from staking my BNB?
At the time this post was published, the APY (Annual Percentage Yield) for staking BNB is 6.30%.
BNB staking rewards are determined by the volume of transaction fees on the network. The more the fees, the higher the rewards.
For the most up-to-date rewards rate, you can check out the Steakwallet app.
What is the minimum amount of BNB I can stake?
Staking your BNB requires a minimum of 1 BNB.
How do I stake my BNB?
When you stake your BNB, you are able to choose how much of your ETH you want to delegate. You are required to stake a minimum of 1 BNB. Once your BNB is staked, it will be locked to your validator, Coinbase.
Your BNB balance is updated every few days to reflect your BNB staking rewards.
Make sure you have enough BNB in your wallet to pay for network transaction fees.
Which validator is my BNB staked to?
Currently, if you stake your BNB with Steakwallet your stake gets delegated to Coinbase Cloud.
How do I unstake my BNB?
You can unstake your BNB at any time, with any amount. Once you confirm the amount, your BNB will start "unbonding" from the validator. This process takes 7 days, during which your unstaked BNB is not earning any rewards. When you unstake your BNB, any unclaimed rewards you may have will be auto-claimed.
When will I start earning rewards?
You will start earning rewards as soon as you stake your BNB!
How do I claim my staking rewards?
You do not have to manually claim your rewards. You earnings will be automatically credited to your deposit every few days.
Does Steakwallet take a cut of my rewards or charge a fee?
No. Steakwallet never charges a fee on your staking rewards!
Is BNB staking safe?
Given that you always maintain custody of your assets (as Steakwallet is non-custodial), you always remain in full control.
While slashing is a common risk for many chains, delegators do not lose their own BNB if their validator’s tokens are slashed. In such an event, the only risk for delegators is the loss of rewards.
Additionally, Coinbase Cloud minimizes its chances of getting slashed by prioritizing double signing prevention over downtime. Learn more about their approach to avoid slashing.