How to Stake DOT: Rewards, Risks, and Best Practices

Yael

/Nov 4, 2025

Key Takeaways

• Understand how Nominated Proof-of-Stake (NPoS) works and its implications for staking.

• Be aware of the risks such as slashing, lockup periods, and validator performance.

• Utilize the official Polkadot Staking Dashboard for managing your staking activities.

• Choose reliable validators and consider joining nomination pools for better returns.

• Maintain self-custody of your keys and use hardware wallets for enhanced security.

Staking DOT is how you help secure the Polkadot network while earning on-chain rewards. Whether you’re new to Polkadot or looking to optimize your setup in 2025, this guide covers how staking works, the real risks, practical steps, and best practices to keep your assets secure.

How Polkadot staking works (in plain English)

Polkadot uses Nominated Proof-of-Stake (NPoS). Token holders (nominators) back professional node operators (validators). Validators produce blocks and perform validation; nominators share in the rewards of the validators they support.

Key mechanics:

Eras and payouts: Rewards are calculated and distributed per era (roughly once per day on Polkadot). Details and parameters evolve via on-chain governance, so always check the latest docs on the Polkadot Wiki’s staking overview for current behavior. See: the official Polkadot Wiki’s page on Staking.
Slashing: Misbehavior by a validator (e.g., equivocation, prolonged downtime) can result in slashing of the validator’s stake and a proportional slash of their nominators. Learn more on Slashing.
Unbonding: When you stop staking (unbond), your DOT is locked for a period before it becomes transferable again. On Polkadot this is currently 28 days, subject to governance changes. See “Bonding and unbonding” in the Staking docs.

For the latest network-wide changes (including tokenomics and protocol upgrades such as Agile Coretime under “Polkadot 2.0”), follow the official Polkadot Blog.

Ways to stake DOT

You have several options with different trade-offs in convenience, control, and risk:

Nominate validators (self-custody)

You select one or more validators, bond your DOT, and earn proportional rewards based on validator performance and commission.
Great for users who want direct control over validator choice and custody.
Start from the official Polkadot Staking Dashboard.

Join a nomination pool

Pooling allows smaller holders to stake together and receive rewards without meeting higher minimums.
Pools are managed on-chain and can simplify reward claiming and maintenance.
Learn how they work on the Polkadot Wiki page on Nomination pools.

Run a validator (advanced)

You operate infrastructure and are directly responsible for uptime, security, and performance.
Higher operational complexity but full control. See the validator setup guides via the Staking documentation.

Custodial and liquid staking options

Exchanges and liquid staking protocols may offer convenience or a liquid staking token (LST), but add counterparty or smart-contract risk.
If you go this route, research carefully and weigh trade-offs versus native staking through the network’s own mechanisms.

What determines your staking rewards?

Rewards on Polkadot are not fixed; they depend on multiple variables:

Network parameters: Reward rates adjust with network staking participation and are governed by OpenGov. See the OpenGov overview: Polkadot OpenGov.
Validator choice: Commission rates, performance, and whether your nomination is in an oversubscribed set all matter. Validator stats can be viewed on explorers like Subscan.
Pool mechanics: If using pools, review the pool’s configuration (e.g., fees, limits) and payout behavior.

You can monitor real-time staking metrics and make nominations directly from the official Polkadot Staking Dashboard.

The real risks you should consider

Slashing: Poor validator behavior can cause a slash of your staked funds. Diversify nominations and choose validators with strong performance, transparent identities, and reasonable commission. See Slashing.
Lockup/unbonding: Your DOT is locked while staked, and unbonding takes time (currently 28 days). Plan liquidity needs accordingly; check the Staking docs for current parameters.
Validator underperformance: Frequent offline events or changes in commission can lower your returns. Regularly review your nominees on Subscan or the Staking Dashboard.
Protocol and governance changes: OpenGov can update staking parameters, reward distribution, or minimums. Keep up with governance proposals via OpenGov.
Third-party risks: Using exchanges or LSTs adds custodial and/or smart-contract risk beyond native staking.

Step-by-step: Staking DOT with the official Staking Dashboard

This is a common, low-friction path that keeps you in self-custody:

Prepare your wallet and DOT

Fund a Polkadot account and keep a small amount of DOT unbonded for transaction fees.
For stronger security, use a hardware wallet that supports on-device transaction verification and offline key storage.

Go to the official app

Open the Polkadot Staking Dashboard in a trusted browser session.
Connect your wallet or extension and select the account you want to stake with.

Choose “Nominate” or “Join a Pool”

Nominate: Pick several validators (diversify) with reasonable commission and good historical performance. Avoid oversubscribed validators.
Pools: Select a reputable pool, review its configuration and fees, then join.

Set your bond and confirm

Decide how much DOT to bond and confirm the transaction on your device.
Double-check address formats (SS58) and details before approving.

Monitor and optimize

Review your rewards and validator performance periodically.
You can rebalance nominations, switch pools, or tweak your payout destination as needed in the dashboard.

If you prefer the classic interface, the Polkadot-JS Apps portal remains available at polkadot.js.org/apps.

Choosing reliable validators

Commission: Lower isn’t always better; sustainable operations matter. Compare rates and watch for sudden changes.
Performance: Look for validators with consistent era points and uptime. Use explorers like Subscan.
Identity and transparency: Validators with verified identity and a track record of communication are generally preferable.
Oversubscription: If a validator is oversubscribed, your nomination may not be counted in some eras. The Staking Dashboard helps you avoid this.

Rotate nominees if performance degrades or commissions spike.

Best practices for security and efficiency

Self-custody first: Keep control of your keys whenever possible and avoid unnecessary custodial risk.
Hardware wallet: Sign transactions offline, verify addresses on-device, and reduce phishing risk.
Verify links and endpoints: Bookmark official apps like the Staking Dashboard and the Polkadot Wiki. Beware lookalike domains.
Leave fee buffer: Always keep a small DOT balance unbonded to cover fees and maintenance.
Track governance: Important changes to staking parameters or economics are decided by OpenGov. Follow proposals and outcomes via OpenGov.
Document your setup: Record which validators you’ve nominated, your bond amount, and your payout destination. It helps with audits and taxes.

Frequently asked questions

What APY can I expect? Reward rates vary with network conditions, validator commission, and your setup. Use the Staking Dashboard to see recent figures and personalize projections.
What’s the minimum to stake? Minimums change with network conditions and the route you choose. Nomination pools generally allow smaller amounts than direct nomination. Check current thresholds on the Staking docs or directly in the Staking Dashboard.
Do I need to claim rewards? For pools, payouts are streamlined on-chain. For direct nominations, payout behavior has evolved over time; always check the dashboard for your account’s status and follow the current guidance in the Staking docs.
How long is unbonding? On Polkadot it’s currently 28 days, but parameters can change via OpenGov. Confirm on the Staking page before unbonding.

A note on self-custody and hardware wallets

If you’re staking via self-custody, a hardware wallet adds strong protection for your keys and transactions. OneKey focuses on:

Open-source approach for transparency
On-device verification of addresses and payloads before you sign
Smooth integration with the Polkadot Staking Dashboard and Polkadot-JS flows for nomination and pool staking

This aligns well with staking best practices: you can securely bond, nominate, and manage rewards while keeping your private keys offline.