Shardeum Staking Guide: How to Delegate SHM and Earn Rewards

The Shardeum Delegators Program is now officially live!

Key Program Highlights

📌 Estimated Delegator APY: ~218%
📌 Network inflation: ~1%
📌 Validator Commission: ~10%
📌 Unbonding period: 21 days
📌 Gas Fee (per delegation-related transaction): ~750 SHM (~$0.16)
📌 Verified Foundation Validators: Listed here
📌 Wallet Support: Keplr (MetaMask support coming soon)

Note: APY is not fixed and will adjust over time as total network stake and other parameters change. Refer FAQ for more details

Quick Start (For Existing Delegators)

Already familiar with delegation and staking on typical blockchain networks? Here’s everything you need for an instant start on Shardeum in 3 steps:

1. Get SHM if you don’t already hold tokens
2. Connect your Keplr wallet to the official Shardeum staking dashboard
3. Verify and choose a Foundation validator, then start delegating.

Important Notes and Best Practices

1. As of today, the projected APY (monthly compounded) is approximately 218%, influenced by:
   • ~433M SHM staked
   • ~10% validator commission
   • ~1% network inflation
   • Transaction fee distribution
   • Validator performance
2. Returns will naturally adjust as network participation grows. A reference example is available in the FAQs.
3. During the initial rollout phase, delegating to Foundation Validators is recommended for reliability and stable earnings.
4. When evaluating validators (especially beyond the initial phase), consider:
   • Uptime and reliability
   • Commission rate
   • Track record and performance
   • Community reputation
   • Voting power distribution (avoid heavily concentrated nodes)
5. Splitting your delegation across multiple validators:
   • Reduces risk
   • Improves decentralization
   • Provides more stable earnings

FAQs

1. I delegated SHM and then used “Delegate More.” My reward counter reset – where are my rewards?

Shardeum’s staking module automatically claims your pending rewards before updating your delegation.

• Your rewards are sent to your wallet instantly
• The reward counter resets and begins accruing again
• No rewards are ever lost

A unified transaction history view will be available soon. For now, here are the formulas to validate your rewards:

✅ Wallet balance verification: current_balance = old_balance + claimed_reward - tx_fee

✅ Claimed reward estimation: claimed_reward = additional_stake + tx_fee + current_balance - old_balance

2. Do my rewards automatically increase my staked amount?

No. Rewards are not auto-compounded into your delegation. They are always sent to your wallet unless you manually redelegate them.

3. How does Shardeum’s APY change over time?

Validator rewards come from a fixed inflation schedule and transaction fees. As more SHM is staked across the network, total rewards are shared among a larger pool of delegators. As noted previously, APY is influenced by several factors and is not guaranteed, nor does it imply that rewards will continuously decline. For example, increased network activity can generate more transaction fees, which may partially offset APY dilution as staking participation grows. This is a standard behavior across Proof-of-Stake blockchains.

Here are illustrative estimates based on current parameters and ~1% inflation rate:

Total SHM Staked on Network	Approx. Annualized APY
First 430 million SHM	~218% APY
At 600 million SHM	~134% APY
At 1 billion SHM	~67% APY

4. How can I achieve the estimated APY?

Rewards do not auto-compound by default. To move closer to the estimated APY, delegators can periodically claim their rewards and re-stake them (for example, on a monthly basis). Re-staking simply means adding your earned rewards back into your staked amount.

By re-staking earned rewards, you introduce a compounding effect, which can increase overall returns over time and help align them more closely with the estimated APY.

5. What happens when I undelegate my SHM?

When you choose to undelegate SHM – either to stop staking or to move to another validator – the following steps occur automatically:

• Your rewards are automatically claimed and sent to your wallet instantly
• Your staked amount enters a 21-day unbonding period
• During unbonding, your staked SHM is locked and does not earn rewards
• After 21 days, your staked SHM becomes available in your wallet

This mechanism protects network integrity while giving delegators full control of their tokens at all times.

6. Is there a minimum amount required to stake or delegate SHM?

No. There is no minimum amount required to stake or delegate SHM.

However, it’s recommended to always keep around 750 SHM as a buffer in your wallet to cover transaction fees. This ensures you can smoothly perform delegation-related actions – such as staking, re-staking rewards, redelegating, or undelegating – on Shardeum’s staking dashboard without interruptions.

7. Can I delegate to non-foundation validators to earn higher rewards?

We strongly recommend delegating to Foundation Validators during the early phase of the program for:

• Maximum reliability
• Stable, predictable returns
• Reduced risk

As the ecosystem matures, you can definitely delegate to non-foundation validators. In fact, it helps increase decentralization and validator diversity over time.

8. I want to run my own validator instead of delegating. How can I start?

Validator setup instructions will be added to our docs page soon. Until then, we do not recommend operating a validator independently during the early network phase. Delegation is the safest and supported method of participation.

Video Tutorial

You can also follow the official video tutorial to start delegating.

Delegator Reward Calculator

Use this simple calculator to estimate your potential staking rewards. It starts with an example of 100,000 SHM delegated, but you can adjust the values to match your own staking amount. A more advanced calculator will be introduced in a future update.

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What is Delegation? (For Beginners)

Delegation is one of the easiest and secure ways to participate in the Shardeum network without running a validator node. Delegation allows SHM holders to “loan” their stake to a validator so the validator can participate in securing the network. By delegating SHM, you help strengthen the network’s decentralization while earning a share of validator rewards.

Importantly, delegation does not give validators control over your funds. You retain full ownership of your SHM at all times. This guide walks you through everything you need to know – from choosing a validator to managing your rewards and undelegations.

Why Does Delegation Matter?

In Proof-of-Stake blockchains like Shardeum, network security and block production are handled by validators. However, only a limited number of validators can be elected into the active set – typically those with the highest stake (their own + delegations).

This means delegators play a direct role in:

• Determining which validators participate in consensus
• Keeping power distributed across many operators
• Preventing centralization and reducing risks such as control by a small group

Put simply: Delegation is not just about earning rewards – it’s how the community helps shape and secure the network itself.

Before You Start

You’ll need:

• A supported wallet (Keplr is currently supported; MetaMask support is coming soon)
  • MetaMask users may import their wallet accounts into Keplr via SRP/private keys as needed.
• SHM tokens for delegation
• Approximately 750 SHM (~$0.16) in gas fees for each delegation or staking-related transaction

How to Delegate SHM: Step-by-Step Guide

1. Visit the Official Staking Dashboard and Connect Your Wallet

Go to the official Shardeum Staking Dashboard: https://dashboard.shardeum.org/

• Connect your Keplr wallet from the top-right corner.
• You’ll see network details such as the latest block height, number of active validators, and total supply.

2. Browse Validators

Click Validators in the left sidebar to view all active validators. Here you can see:

• Commission rate
• Voting power
• Uptime and performance metrics

To see detailed validator information (ranking, operator address, status, commission breakdown), click on the validator’s row to open the details panel. When you’re ready, click Delegate on the right-hand side.

3. Enter the Amount of SHM

In the delegation pop-up:

1. Enter how much SHM you want to delegate
2. Confirm the transaction in your wallet

Important: Although the estimated gas fee may appear as ~0.005 SHM, the actual gas fee is approximately 750 SHM (~$0.16).

Once confirmed, visit the Staking section on the dashboard to see:

• Total SHM delegated
• Rewards earned
• Active validators you’ve delegated to per wallet

That’s it! Your delegation begins earning rewards immediately after confirmation as shown in the second screenshot.

Managing Your Delegation

Rewards accumulate continuously and can be claimed at any time. There is no bonding or lockup period for claiming rewards. Each claim requires a small gas fee (~750 SHM). You can also increase your delegation at any time by selecting Delegate More in the Staking section.

Undelegating SHM

If you want to stop delegating or switch validators, click Undelegate.

When you undelegate:

• Your rewards are automatically claimed and sent to your wallet instantly
• Your staked amount enters a 21-day unbonding period
• During unbonding, your SHM is locked and does not earn rewards
• After 21 days, your SHM becomes available in your wallet

This mechanism protects network integrity while giving delegators full control of their tokens.