How to Stake AVAX on the Avalanche Network

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Staking is a fundamental process for securing the Avalanche network and earning rewards. By staking your AVAX tokens, you can participate as a validator or delegator, contributing to network consensus and receiving incentives for your support. This guide explains the core mechanics, requirements, and best practices for staking on Avalanche.

Understanding Staking on Avalanche

When a validator successfully validates the Primary Network, their staked AVAX tokens are returned, often with an additional reward for helping secure the network. Validation rewards are only granted if the validator maintains sufficient responsiveness and correctness throughout the staking period. The detailed mechanics of AVAX staking are covered in the official Avalanche token white paper.

Rewards are distributed to your wallet address at the end of the staking term, provided all staking parameters are met.

Mainnet Staking Parameters

The Avalanche Mainnet has specific requirements for staking:

A validator qualifies for a staking reward if it is online and responsive for more than 80% of its validation period, as measured by a majority of validators weighted by stake. Aim for 100% uptime to ensure reward eligibility.

You can check your node's performance using the API method info.uptime to see its weighted uptime and the network's perception of its eligibility. For an alternative view, consult the Avalanche Validator Health dashboard. A reported uptime significantly below 100% may indicate a configuration issue that could jeopardize your reward.

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Fuji Testnet Staking Parameters

The Fuji Testnet mirrors Mainnet parameters with a few key differences for testing:

All other parameters, including maximum durations and delegation fees, remain consistent with Mainnet.

The Role of a Validator

Validators are crucial for securing Avalanche. They create new blocks, process transactions, and achieve consensus by sampling each other, with the probability of being sampled proportional to their staked amount.

When adding a node to the validator set, you must specify:

Critical Note: The minimum validator stake is 2,000 AVAX. Once the transaction to add a validator is issued, the parameters are immutable. You cannot change the stake amount, node ID, reward address, or remove your stake early.

Best Practices for Running a Validator

Running a successful validator requires a stable and well-connected node to ensure you receive rewards. Staked tokens and the transaction fee are deducted from your controlled addresses when you start validating. Upon completion, the staked funds are returned, and any earned rewards are sent to your specified address.

Allowing API Calls

To enable remote API calls to your node, allow traffic on the default API port (9650) and run your node with the argument --http-host=. For security, disable unused APIs via command-line arguments and restrict API port access to trusted machines only.

Managing Low Uptime

Validators track each other's uptime, with influence weighted by their stake. The info.uptime API method provides your node's weighted uptime. Remember, the info.peers call only shows one node's perspective; a single low uptime reading does not necessarily mean you will forfeit rewards.

If your node's uptime is low, verify that you have set the config option --public-ip=[NODE'S PUBLIC IP] and that your node can receive incoming TCP traffic on port 9651.

Secret Management

The primary secret on your validating node is its Staking Key (TLS key), which determines your node's ID. This key is created at first startup and stored in $HOME/.avalanchego/staking/staker.key. Back up this file and staker.crt securely. Losing your Staking Key could result in a new node ID and jeopardize rewards.

It is a best practice to not store significant AVAX funds on your validating node. Keep the majority of your funds in "cold" storage, where the private key is not on any internet-connected computer.

Node Monitoring

Regular monitoring is essential for maintaining node health and uptime. Utilize available tutorials to set up monitoring for your node's performance and general status.

Understanding the Staking Reward Formula

A validator's reward is calculated based on the amount staked and the duration. Consider a validator that stakes an amount of AVAX (S) for a period of T seconds.

At the start of the staking period, there is a total of V AVAX in the Primary Network. The maximum supply is M. A responsive validator receives a reward R at the end of its staking period, calculated as:

R = S * T * (M - V) / (260 * M * 365.25 * 24 * 3600)

Note: The reward calculation uses the entire staking period (T), not just the uptime. Uptime only determines reward eligibility; the duration is fixed once the staking period begins.

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The Role of a Delegator

Delegators are token holders who wish to participate in staking by trusting an existing validator. Delegating involves specifying:

Critical Note: The minimum delegation amount is 25 AVAX. Delegation parameters are also immutable once the transaction is issued.

Delegator Rewards

If the validator you delegate to is sufficiently correct and responsive, you will receive a reward at the end of the delegation period. Delegator rewards are calculated using the same function as validator rewards. However, the validator keeps a portion of your reward as specified by their delegation fee rate.

Staked tokens and the transaction fee are deducted when you delegate. Upon completion, your staked tokens are returned, and any rewards are sent to your specified address. Rewards are distributed to delegators immediately after their delegation ends, even if the validator's overall validation period is still ongoing.

Frequently Asked Questions

How is it determined if a validator receives a staking reward?
When a node leaves the validator set, other validators vote on its reward eligibility based on its measured uptime. A validator votes "yes" if it calculates the node was responsive for more than 80% of the period. The vote is weighted by stake, and the majority decision determines if a reward is granted. Each staking period is evaluated independently.

How are delegation fees distributed to validators?
If a validator is online for over 80% of a delegation period, it receives a percentage (the fee) of the delegator's reward. After the Cortina upgrade, these fees are batched throughout the validator's entire validation period and distributed when it unstakes, rather than as separate transactions per delegation.

What does the error "Validator Would Be Over Delegated" mean?
This error occurs when a delegation attempt fails for one of three reasons: the delegator's start time is before the validator's start time, the delegator's end time is after the validator's end time, or the additional delegation would cause the validator's total stake to exceed its maximum allowed weight.

Is there a tool to check a validator's health?
Yes, you can use the Avalanche Stats Validator Health Dashboard. By entering a node's ID, you can get detailed insights into its performance and health status.

Can I change my staking parameters after I start?
No, all staking parameters—including stake amount, node ID, reward address, and duration—are locked in when the transaction is issued and cannot be changed for that staking period.

What is the absolute minimum uptime required to get a reward?
While the protocol requires more than 80% uptime to be eligible for a reward, you should aim for as close to 100% as possible. The measurement is weighted by stake, meaning larger validators have more influence in determining your node's perceived uptime.