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Questions about the FTX creditor distribution via BitGo? Read our FAQs.

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Staking Overview

What is Staking?

Staking is the process of participating in the validation of transactions on a proof-of-stake (PoS) blockchain network. By staking your digital assets, you help secure the network, and in return, earn rewards. 

Anyone holding a minimum balance of a PoS can stake and start earning, depending on the network. 

Why Stake Your Assets?

1. Earn Rewards

Staking allows you to put your idle digital assets to work by generating steady rewards over time, independently of market prices. Plus, you can benefit from potential annual returns ranging from ~3% to over 20%, depending on the network and its tokenomics.

2. Support the Network

Your staked assets help maintain the security, health, and performance of blockchain networks. Staking can also let you participate in governance, allowing you to influence key proposals and decisions that shape the network’s future.

Why Stake with BitGo?

  • Safe & Secure: Stake directly from your qualified custody or self-custody wallets in one click

  • BitGo Staking: Stake with BitGo’s Go validators or select from a list of trusted partners and liquid staking solutions

  • All-in-one, Centralized Platform: Seamlessly manage staking directly from your BitGo wallets, while accessing BitGo’s protocol and financial solutions (trading, borrowing, lending and more) through a single, unified interface

  • Best-in-Class Reporting: Track your rewards and staking activity across multiple digital assets with on-demand reporting

How Does Staking Work?

There are two main ways your digital assets can be staked with BitGo:

  1. Staking Accounts: Assets are transferred to a staking address but remain in custody. Rewards must be claimed from the original wallet (e.g., ETH, SOL, NEAR).

  2. Locked in Wallet: Assets never leave your wallet, but they are locked and inaccessible until you manually unstake them (e.g., AVAX, DOT SUI).

What Are the Risks?

  • Potential for Limited Liquidity: Staking limits liquidity because tokens are locked and can't be sold or transferred. Unstaking triggers an unbonding period, often lasting days or weeks depending on the network, during which assets are inaccessible and may not be able to earn rewards. 

  • Slashing: Slashing is a security mechanism that reduces your portion of staked assets as a penalty for validator misbehavior. Although rare and dependent on the unique rules to each network, slashing can occur if a validator is offline for extended periods or engages in harmful actions like double-signing.