Crypto staking

By staking crypto you can help secure the network and maintain its functionality. In return, the network rewards you with additional crypto or a share of the transaction fees generated within the network.

• Solana (SOL)

Staking allows you to earn rewards by locking up crypto. The process varies slightly depending on the network and crypto you choose, each having its own requirements and bonding periods. Once you initiate the staking process, you will not be able to sell that crypto. After the assets are bonded, they will begin receiving rewards for the duration of the staking period.

To stake crypto:

1. Select Get started with staking or Manage staking on the coin detail page of the individual crypto you hold and wish to stake.

• Alternatively, you can select the Staking card on the crypto home tab

3. Select the crypto you want to stake under Get started
4. Select Stake
5. Enter an amount to stake, either in Euros or crypto amount and select Continue
6. Review details and select Stake to submit your request

You can submit a request to unstake your crypto any time after the bonding period has ended, or cancel a pending stake request before the bonding process has begun. Keep in mind that each crypto may have a minimum amount required for unstaking, and you will cease to earn rewards on this amount once the crypto is unstaked.

To unstake crypto:

1. Select Manage staking in the Holdings section on the Portfolio tab
2. Select the crypto to unstake under Staked balance
3. Select Unstake
4. Enter the amount you want to unstake, either in Euros or crypto amount and select Unstake
5. Review details and select Unstake to submit your unstaking request

To cancel a pending stake submission:

1. Go to the coin detail page for the crypto with a pending stake submission
2. Scroll down to History and select the transaction line item
3. Select Cancel staking request
4. Review and select Yes, cancel request

You can see your complete Reward history including any pending earnings by going to Account → Menu → History.

Your rewards will begin to accrue after the bonding period is complete. Generally, reward rates are dynamic and subject to change depending on current conditions. All advertised reward rates are estimated rates in the form of an APY that may change. Your reward will equal the estimated protocol rate minus staking partner fees minus Robinhood Crypto fees. The reward is then paid out in crypto.

You can also see your history, reward details, and upcoming payout dates for each individual coin by selecting Manage [Coin] staking from the staking hub.

Estimated protocol rate

An estimated protocol rate is an estimate of the returns you might receive from staking with a particular crypto protocol. This rate reflects how much you could earn from staking your crypto through the protocol, based on current conditions and the rules set by the protocol.

Staking partner fee

Staking partner fees are the charges applied by a third-party service that Robinhood Crypto uses to facilitate the staking of your crypto. When you choose to stake your crypto through Robinhood Crypto, the process is managed by a specialized partner that provides the necessary technology and support. These fees, which the partner charges, may be a percentage of your staking earnings or a fixed rate. They compensate the partner for the services rendered in managing the staking process.

Robinhood Crypto fee

A Robinhood Crypto fee of 25% is applied.When you stake SOL with Robinhood Crypto, here’s an example of how your earnings and fees break down:

• Estimated Protocol Rate: 6% - This is the basic rate of return before any fees.
• Net APY for SOL staking: 4.185% - This includes both the Robinhood Crypto fee and our staking partner fee.

The bonding period is the time it takes from when you submit your crypto to be staked to when you start earning rewards.

The bonding period varies depending on the crypto being staked. Different crypto and their respective blockchains have unique rules and timelines for how quickly staked assets are processed and begin accruing rewards.

The unbonding period is the time it takes to withdraw your crypto from the staking process. After you decide to unstake your crypto, you can't access it immediately. The unbonding period is a safety feature that helps prevent fraud and other security issues by ensuring that the staked crypto remains locked for a certain duration before being released back to you. This period allows the network to process the withdrawal securely and update the system to reflect the change in staked assets.

The unbonding period can vary depending on the specific crypto being staked. Each blockchain has its own set of rules and conditions for staking, which includes different durations for the unbonding period. This means the time it takes to withdraw your staked assets and stop earning rewards can change based on the crypto you choose to stake. It's important to check the specific staking conditions for each crypto to understand how long the unbonding period will be.

Currently, we only support staking for Solana (SOL).

While staking crypto with Robinhood offers potential rewards, it's important to understand the associated risks. Here’s are a few risks to keep in mind before you decide to stake your crypto:

• Unstaking time: Once you have staked your crypto, it will not be available for selling until you unstake it. The unstaking process can vary depending on the specific crypto asset. The duration for unstaking is often set by the underlying blockchain protocol. Crypto prices can be highly volatile, and the market value may significantly change by the time you successfully unstake.
• Protocol penalties: Some blockchain protocols enforce penalties (often referred to as "slashing") if the validators misbehave or fail to fulfill their duties. While rare, these penalties can lead to a loss of a portion of your staked crypto.
• No guarantee of rewards: Staking rewards depend entirely on the workings of the underlying protocol. Changes to protocol rules or network conditions can affect staking rewards, and there may be times when you might not receive any rewards. The rewards are calculated and distributed by the network, not by Robinhood Crypto, and we charge a fee, which is explained above.

Before you opt to stake crypto, we encourage you to review these risks.

Proof of Stake (PoS) is a security protocol used by some crypto to validate transactions and manage the blockchain. Unlike Proof of Work, which requires powerful computers to solve complex mathematical problems, Proof of Stake allows crypto holders to participate in network operations by "staking" some of their coins. This means they lock up a portion of their crypto to be chosen as a validator of transactions. The more crypto a person stakes, the higher their chances of being selected as a validator. Validators are then rewarded for their efforts in maintaining network integrity.

If you encounter issues or have questions about staking within your Robinhood Crypto app, you can contact chat support through the app or email us at cryptoeusupport@robinhood.com.