Polkadot Simplifies Staking Process with New Nomination System

Staking on Polkadot allows holders to earn rewards for helping secure the network. The proof-of-stake system, called Nominated Proof of Stake (NPoS), relies on token holders backing trustworthy validators instead of running expensive hardware.

Polkadot's nomination system works by electing a new active validator set every 24 hours. Nominators can back up to 16 validators at once, spreading their stake across them. Rewards are paid out per era, split between the validator and its nominators in proportion to stake.

There are two staking paths on Polkadot: direct nomination and nomination pools. Direct nomination requires a minimum amount of DOT, which is around 230-250 DOT. Nomination pools, on the other hand, allow smaller holders to combine their DOT into one collective nominator account, and rewards are split proportionally among members.

Before staking, make sure you have a non-custodial Polkadot wallet that supports staking extrinsics and enough DOT to meet either the pool minimum or the dynamic direct-nomination threshold. A small amount of transferable-DOT is also needed for future actions like unbonding.