Avalanche network participants are incentivized to stake and validate through AVAX staking rewards. For the first year, the annual staking reward will target a rate between 7% and 12%.
Users can become full validators in the Avalanche network by running a node and staking a minimum of 2,000 AVAX.
Those that do not have 2,000 AVAX or do not want to run their own node may delegate to a validator to validate on their behalf.
When nodes become full validators, they specify a delegation fee rate. Other users can delegate to any validating node, with a percentage of the staker’s rewards going to the actual validator.
Integrating staking into regular wallets will simplify the process and make staking available to a broader audience.