Key takeaways
Solana needs a more diverse set of validators
We just launched Squads Validator
Stake with Squads from the Squads app and get a free Squads Pro subscription if you stake 1000+ SOL with Squads Validator
The State of Solana Staking
Staking SOL is the easiest way to earn passive income and help secure the network.
As of now, 64% of the SOL in circulation is staked, while 36% remains unstaked. The ~287 M staked SOL gives Solana a staking market cap of $46B, compared to a total asset market cap of $72B.
Solana boasts 1,713 validators, but most of the staked SOL is held by a few validators from large institutions such as Coinbase, Galaxy and Figment.
This has kept Solana’s Nakamoto Coefficient (NC) steadily at 21. The NC measures the minimum number of validators needed to censor blocks or interfere with consensus. This number is referred to as the superminority. A higher Nakamoto Coefficient i.e larger superminority suggests greater decentralization and resistance to attacks, as it implies that more independent entities would be required to coordinate malicious activities.
Solana’s Nakamoto Coefficient could be higher, allowing for more decentralization and security. However, that would require more teams with a deep technical understanding of the Solana network to spin up high-quality validators that can attract a significant stake to break into the superminority and join Coinbase, Galaxy, Figment & Co.
Introducing Squads Validator
With Squads Validator, this is exactly what we have set out to do.
You can now stake your SOL to Squads Validator directly from the Squads app. Visit our docs for step-by-step instructions.
Apart from earning passive income on your SOL, we are also offering a free Pro Subscription to all Squads users who stake 1,000+ SOL with Squads Validator (only applicable for the duration of the stake). Stake via app.squads.so to automatically receive and activate your Squads Pro subscription.
If you’d like to learn more about the Squads validator, browse through our Stakewiz, Jito, or Stakeconomy.
About Squads Labs
Squads Labs is a core contributor to Squads Protocol, the leading multisig infrastructure on Solana. In addition to helping maintain the protocol, Squads Labs makes the Squads platform, an institutional-grade multisig platform for Solana-based teams. The Squads platform helps web3-native teams manage and secure digital assets on-chain. To learn more about Squads Labs, please visit https://www.sqds.io/.
About Squads Protocol
Squads is a multisig protocol that helps web3-native teams manage and secure digital assets on-chain. Squads Protocol v3 is the first formally verified program on Solana. Squads Protocol v4 introduces time locks, spending limits, roles, sub-accounts, fee relayers, multiple-party payments, support for SquadsX and more. Squads v4 has already been audited by Neodyme, OtterSec, and Trail of Bits. It is currently undergoing two formal verifications, one by OtterSec and the other by Certora. To learn more about Squads Protocol, please visit https://squads.so/protocol
