Internet Computer (ICP) Staking: A Beginner's Guide

The Internet Computer (ICP) is a unique blockchain that operates on a four-layered consensus mechanism based on proof-of-stake, enabling crypto staking. Unlike many other blockchains, ICP’s governance is decentralized through the Network Nervous System (NNS), which allows participants to vote on proposed changes to the network. While staking ICP is not yet widely discussed, it is crucial in securing the network and empowering its governance.

In this article, to help you understand the process better, we will answer common questions like, what is Internet Computer (ICP) staking? How does ICP staking work? We will also walk you through a simple step-by-step guide on how to stake ICP and explain the rewards you can earn and the conditions you need.

Internet Computer Protocol Staking: Summary

This article provides a comprehensive guide to staking ICP, starting with its core functionality. We’ll list the best platforms for staking your ICP, outlining their advantages and drawbacks. We’ll also tell you about the mistakes to avoid and share strategies for getting maximum rewards. You will learn about the advantages and disadvantages of staking ICP so that you can make a more informed decision if ICP aligns with your investment goals.

What is ICP Staking?

Staking Internet Computer is holding your ICP coins in a wallet connected to the network and participating in transaction validation. Stakers receive rewards for their participation.

Key Takeaways

The ICP governance is decentralized via the Network Nervous System (NNS), allowing users to vote on changes to the Internet Computer.
ICP holders can stake their tokens using the NNS app or through various staking platforms.
Staking ICP offers an estimated annual yield of around 8%, depending on the platform used.
Recommended platforms for staking ICP include the NNS app, Binance, Ledger, and Bitrue.
Effective staking strategies involve understanding the staking process, evaluating rewards, managing the dissolve delay, and keeping up with network updates.

Before you go on to understand ICP staking, we suggest you check out our “What is Internet Computer” guide to first understand the basics of this coin. ICP coins differ from other blockchains as they involve locking the tokens within the Network Nervous System (NNS), the Internet Computer’s decentralized governance system. The NNS allows people to influence the development and operations of the ICP blockchain. Holders can stake their ICP by either staking it on the Network Nervous System App or depositing it onto a crypto staking platform. So, the first step to staking ICP is purchasing the coin. To learn where and how to buy it, check out our guide on “How to buy ICP.”

How Does ICP Staking Work?

Staking is supported by cryptocurrencies that follow a Proof-of-Stake (PoS) consensus mechanism that picks random validators to confirm the network transactions. The ICP network isn’t totally based on PoS. Instead, it uses a unique four-layered system that’s partly based on PoS. This setup makes it possible to stake ICP and earn rewards.

What is ICP staking — Source: Shutterstock

Remember, your staked ICP becomes a ‘neuron’. You might ask, what is that? Well, it’s basically a special type of account, which is used to vote on governance decisions and to earn staking rewards. Every day, the network calculates rewards for neurons. If your neurons take part in voting, you get a share of these rewards based on how much ICP you have staked. The more you participate, the more you earn. This system rewards users for helping keep the network secure. It should be noted that the minimum requirement for ICP staking is 1 ICP.

What is NNS, and How Does it Work?

To understand ICP staking well, we need to look at its fundamentals. As we mentioned, the Internet Computer is different from other blockchains as the ICP governance is decentralized via the Network Nervous System (NNS). The NNS allows stakeholders to propose and vote on changes to the network.

DFINITY is the organization that created and maintains the ICP blockchain. However, it can’t implement significant changes to the Internet Computer without first presenting a proposal to the NNS. Every proposal contains the following segments:

URL: Web links that provide details needed to review the proposal
Summary: A brief description of the proposal
Proposer: The ID of the neuron that put the proposal forward
Parameters: The settings or information that will be delivered to the system if the proposal gets approved
Proposal type: The category of the proposal and the topic it relates to
Unique identity: A special ID given by the NNS to each proposal it receives

ICP holders stake their tokens by creating neurons and granting them voting power. If a proposal is accepted, the change is added to the Internet Computer, and the update is distributed to all network nodes. Every change, from a big fix to a typo to a new feature, has to go through the NNS, giving the community full control over the Internet Computer. Those who vote on NNS proposals are ICP stakers, which means they have governance power and earn rewards for participating.

If you lock your ICP for a longer time, you will earn higher staking rewards. But the staking rewards can’t be taken out right away. There is a bit of waiting time, which is called the dissolution period. It simply means you will have to wait longer before you can access your tokens.

In all of this process, neurons play a major role. As we discussed earlier, these are special accounts that hold your ICP tokens so you can earn rewards and voting power in the NNS. You can also use neurons to submit proposals. You can’t withdraw ICP from a neuron immediately because you need to give notice before unlocking your tokens. The more ICP coins you stake in a neuron and the longer you set your dissolve delay (unlocking time), the more voting power your neuron has.

Other Top Coins Worth Staking

Staking Internet Computer Protocol (ICP) can be a great way to earn passive income. However, it’s just one of many options. Check out our list of the ‘Top Staking Coins in 2025‘ to diversify your staking portfolio.

How to Stake ICP? A Step-By-Step Guide

Let’s explain the step-by-step process of staking Internet Computer on NNS:

1. Go to the Network Nervous System’s official site. Choose ‘Neuron Staking’ on the left navigation bar. Then click ‘Stake ICP’ at the bottom.

Internet Computer (ICP) staking — Image Source: NNS Website

2. Add the number of ICPs you’d like to stake and pick the source wallet.

3. Set the dissolve delay. If you want voting power, set this value to at least six months. Choose the ‘Min’ button to set the minimum value or the ‘Max’ button for a maximum dissolve delay of eight years. Press ‘Confirm and Set Delay.’

Step by step guide to staking ICP — Image Source: NNS Website

4. After creating your neuron, you can follow other neurons, too. Enabling this ‘Follow’ feature automates your neuron’s participation in proposal voting, meaning you can increase your neuron rewards.

How Internet Computer Staking works — Image Source: NNS Website

5. Choose a specified group of neurons to follow by picking ‘Add Followee,’ after which a list of available neurons is displayed. You must confirm that your ‘following settings’ have been updated and close the window.

6. On the ‘Neuron Staking’ page, you will see your neuron, its ID, and dissolve delay time. Click on the neuron for more details.

ICP Staking methods — Image Source: NNS Website

7. Here, you can execute actions such as increasing the dissolve delay, adding more ICP to your stake, or starting the process to dissolve the neuron. Scrolling down reveals advanced settings and details, such as when the neuron was created, its account ID, and options to contribute to the neuron’s fund or split the neuron. You can learn more about these advanced features. At the very bottom, you will find information about the followed neurons, assigned hotkeys, and the neuron’s voting history.

How Much Can You Earn by Staking ICP?

Currently, staking Internet Computer has an annual yield of about 8%. However, that depends on the platform you choose for staking. On that note, the ICP staking reward offered by exchanges is between 4.5% and 11% APY in a locked or fixed term. Longer terms are available, such as 120 days for a 6.9% on Binance, for example. You can also use an ICP staking calculator to estimate potential rewards.

Besides the lock-in period, various other factors can affect your rewards. These include the amount of ICP you have staked, the length of the dissolve delay, how many neurons take part in voting on proposals, the age of your neuron, and the average age of all neurons on the network.

Tips and Strategies for Maximizing ICP Staking Rewards

After staking your ICP, you will find four options on the ‘Staking Portal’ that allow you to manage your position:

Stake more: To do this, click on ‘Increase Stake’ on the staking dashboard.
Update your Dissolve Delay: Click ‘Increase Delay’ to increase your stake period. That way, you can enhance your voting power and earn more rewards.
Follow and unfollow other neurons: To earn rewards, your neurons need to vote on proposals. If you don’t want to vote manually, you can choose to follow other neurons that will vote on your behalf. You can also unfollow them at any time.
Claim reward and dissolve: On the staking dashboard, click ‘Start Dissolving’ to unstake your tokens and receive rewards.

Another excellent strategy to maximize ICP return is to make your dissolve delay as high as possible and then compound your returns. That means taking any ICP rewards you get and reinvesting them into your staked neuron. Currently, compounding is a manual activity, but the DFINITY foundation has been considering upgrading the NNS app feature with automatic compounding.

Where to Stake ICP: Top 5 Platforms For Staking ICP in 2025

Many platforms offer staking options for ICP, each with its own terms and reward rates. Let’s review the top five:

Best Wallet

Best Wallet is a mobile crypto wallet that is quite well-known in the industry for its security features and ease of use. Are you new to crypto, and do you find staking overwhelming because of the many processes involved? Well, that’s where Best Wallet proves its mettle. It makes staking, buying, selling, and even swapping very convenient and easy for beginners. You can pretty much fulfill all your crypto needs from one application without any hassle.

Top wallet for staking ICP — Source: Best Wallet

What’s the best part of using this wallet, you may ask? Unlike Binance or Coinbase, you get to keep the private keys, which reduces exposure to hacking risks. Many users say the ‘Upcoming Tokens’ section built inside the app has given them some good opportunities to get in the crypto presales early before they hit the secondary market. Learn more about this web3 wallet in our Best Wallet review for 2025.

Best Wallet Key Features

Non-custodial wallet that helps you avoid hacking incidents and keeps your funds secure
Fiat on-ramp/off-ramp helps users convert fiat to crypto and vice versa.
Provides a simple setup for beginners and advanced features for experts
Offers investors a chance to participate in early stage crypto projects
It has third-party insurance through Fireblocks

Best Wallet Pros & Cons

Pros:

Free to use mobile wallet with strong security features
Easy to use and offers a beginner-friendly user interface
Supports staking for various cryptocurrencies
Has an integrated DEX for all crypto-related activities

Cons:

Customer support is a bit slow
The browser extension is not yet out for use
Doesn’t support staking for all the altcoins

Visit Best Wallet

NNS App

The NNS is software that governs the Internet Computer by allowing participants to make community-based decisions. It also represents a blockchain with a public key to validate transactions. The NNS puts forward proposals, and ICP holders vote on them. In return for participating, they earn ICP tokens as rewards.

Where to Stake ICP — Image Source: NNS Website

The annualized staking returns are time-based (from six months to eight years). Internet Computer staking has an average annual yield of around 8%. Even though staking on the NNS app is relatively direct, it might not be the most convenient option. That’s because users have to buy ICP tokens from a crypto exchange, then move them back to the app and stake them. Staking ICP directly on an exchange where the tokens are purchased or traded is much simpler.

NNS Key Features

Software that governs Internet Computer
A blockchain with a public key to validate transactions
The NNS puts forward proposals, and ICP holders vote on these
It offers time-based staking returns (from six months to eight years)
Users have to buy ICP tokens from an exchange and then move them back to the app

NNS Pros and Cons

Pros:

You get to participate in direct governance
There’s no need to run a validator, just create a neuron and stake it
All proposals, votes and reward mechanisms are publicly visible

Cons:

The staking process can be complex for new users
Requires transferring tokens from exchanges to the NNS dapp
ICP coins can’t be immediately withdrawn once locked

Binance

Binance is one of the top DeFi staking platforms; it added ICP to its staking list in 2022. Currently, it provides four locking periods: 30, 60, 90, and 120 days, with APYs of 0.13% to 6.9%, respectively. The flexible option allows participants to choose the number of days to stake ICP and offers an APR of 0.13%. While the flexible option allows users to pick the locking period based on their convenience, the returns are relatively negligible. To stake on Binance, a minimum of 0.1 ICP is required.

Platforms to stake ICP — Source: Binance Website

As we explained in our Binance review, the exchange is an excellent pick for staking cryptocurrencies like Internet Computer, thanks to its strong security features and high liquidity. Its user interface is quite beginner-friendly, and the customer support is very active. Check out our Binance Staking guide for more details.

Binance Key Features

Binance offers four locking periods for ease of staking
For ICP, users can expect rewards between 0.13 and 6.9%
One can choose between a flexible and locked option
The minimum ICP required for staking is 0.1
The exchange provides strong security features

Binance Pros & Cons

Pros:

User-friendly platform with a simple staking process
You don’t need to understand complex concepts such as neuron structures or NNS
Rewards are automatically calculated and distributed accordingly

Cons:

When you stake via Binance, you don’t get any governance power
You don’t fully control your assets because Binance takes custody

Visit Binance

Ledger

Ledger provides the option for staking the best altcoins, including ICP, allowing users to earn passive income to help secure the network. Staking ICP includes users delegating their ICP by pairing the NNS Wallet with their Ledger hardware wallet (our Ledger staking review outlines the steps and benefits of using this wallet). Then, users can pick a reputable validator to get competitive rewards and keep ownership of their ICP tokens.

Best hardware wallet to stake ICP — Image Source: Ledger Website

Ledger offers cold storage, which is important for several reasons. First, pairing Ledger with a third-party wallet enables users to grow their ICP holdings securely. It also allows them to keep full custody of their assets. Finally, it gives them the freedom to choose which validators to use. Ledger’s new models, Ledger Stax and Ledger Flex, are both quite competitive, and they make staking way easier.

Ledger Key Features

Stakers can delegate ICP by pairing the NNS Wallet with their Ledger hardware wallet
They can pick a reputable validator to get competitive rewards
Users keep full ownership of their ICP tokens
Helps prevent unauthorized transactions

Ledger Pros & Cons

Pros:

Provides highest level of security since private keys never leave your device
You can choose which validator or neuron followers to support
Works seamlessly with NNS dApp

Cons:

Requires purchasing a hardware wallet, adding an upfront cost
The technical set-up can be complicated

Bitrue

Bitrue allows its users to stake ICP with no lock-up periods and an expected annual rate of 0.465%. That means users’ funds won’t be locked, and they can opt out whenever they want. Investors can stake with a minimum of 10 ICP tokens.

Exchanges to stake ICP crypto — Image Source: Bitrue

This is a good alternative to Binance in terms of its flexibility, given that the interest offered here is 257% higher than that of Binance. Bitrue’s daily rewards are distributed at 16:00 UTC. Interest accrues from the second day, with payouts starting on the third, but no partial interest is earned for mid-day withdrawals.

Bitrue Key Features

Bitrue allows its users to stake ICP with no lock-up periods
Flexible opt-in and opt-out with no penalties
The expected annual reward rate is 0.465%
Investors can stake with a minimum of 10 ICP tokens
Bitrue’s daily rewards are distributed at 16:00 UTC

Bitrue Pros and Cons

Pros:

No lock-up period
Expected reward annual rate of 0.465%
Flexible option provides a 257% higher interest than that of Binance

Cons:

No partial interest is earned for mid-day withdrawals
The platform has experienced quite a few security incidents in the past
Operates without regulation from major financial authorities

Benefits and Risks of Staking ICP

Benefits

Convenient staking options: People can stake Internet Computer on the NNS app or exchanges, both of which are convenient and simple.
Voting power: Stakeholders get voting power and can earn voting rewards.
Securing the network: By staking, individuals contribute to the security and validation of the Internet Computer blockchain, enhancing its overall integrity.
Competitive APY: ICP staking provides decent APYs, making it an optimal choice for investors.

Risks

Volatile nature: Although the ICP tokens are staked, their value can still change depending on the market conditions. In bearish markets, the token’s value can decrease, potentially leading to financial losses despite staking.
APYs tend to change: APYs are bound to change. On Binance, for instance, ICP staking provided an APY of over 25% for 120 days in the past, whereas at the time of this writing, it offers a 6.9% APY for the same period. If the market conditions face rapid changes, these changes can affect reward rates.
Vulnerability to attacks: Cyber threats pose significant risks to crypto assets. Investors should remain aware of potential scams and phishing attempts. The safest types of crypto wallets are hardware wallets, as they store your private keys offline.

ICP Staking vs ETH Staking: A Comparative Analysis

ICP and ETH staking differ primarily in their consensus mechanisms and governance structures. ICP uses a four-layer consensus mechanism with a decentralized governance model through the NNS, where token holders participate in voting on protocol upgrades. Stakers in ICP can earn rewards by locking tokens in “neurons” for governance participation, with flexible staking options and a minimum of 1 ICP. The rewards go up to 8% APY but depend on factors like voting participation and lock-up duration. Unlike Ethereum, which has a fixed staking model with validators needing at least 32 ETH, ICP staking offers more flexible terms and governance involvement.

In general, Ethereum staking is one of the top ways to earn free ETH. Its staking rewards, which depend on the network’s overall staking participation and validator performance, are typically lower than ICP’s at around 4-5% APY. ETH staking is also subject to a lock-up period of several weeks, unlike IC, which offers both flexible and locked staking options.

Feature	ICP Staking	ETH Staking
Consensus mechanism	A four-layered consensus mechanism based around PoS	PoS
Governance	Yes	No
Minimum stake	1 ICP	32 ETH
Duration	Flexible and locked options	Locked option
Reward calculation	Based on governance participation, stake duration, and voting	Based on validator performance and overall network participation
Staking rewards	Up to 8% APY	Up to 5% APY

Mistakes to Avoid When Staking ICP

Some of the most common mistakes ICP stakers make are:

Omitting thorough research: You should understand ICP’s underlying technology, viability, and vision before committing. Analyze its whitepaper, historical performance, and its team’s reputation. Also, follow market analysis and news to stay up-to-date about the latest developments that could impact the staking rewards.
Ignoring the staking conditions: Many don’t consider the conditions associated with staking ICP. Ensure you understand the terms, lock-up periods, fees, and potential penalties for early withdrawals.
Failing to understand the dissolve delay mechanism: If you set a long dissolve delay, your coins will be locked longer. The means if you decide to unstake, you will have to wait for that time period to finish before you can have access to your coins.
Overlooking security risks: Security should be a priority when staking ICP. Choose secure staking platforms and non-custodial wallets like Best Wallet, considering features like encryption protocols and two-factor authentication.

Best Practices to Stake ICP

Some of the best strategies for staking this coin include:

Comprehending its staking mechanism: It’s crucial to understand how staking works for ICP. Educate yourself about the requirements, process, and any additional considerations, such as neuron creation and voting rewards.
Assess the staking rewards: Factors to consider are the staking duration, APY, and any additional incentives the network offers. Compare the rewards of different platforms. To make more informed decisions, you can use an ICP calculator to evaluate staking rewards across various platforms.
Managing the dissolve delay: A longer one increases rewards and voting power, while a shorter delay means you will lose out on future benefits. Consider this carefully based on your investment approach.
Stay up-to-date about network updates: Stay informed about the latest developments and news related to ICP. Changes in network upgrades, protocols, or upcoming events can highly affect staking rewards and the overall network performance. Engage with the community through social media channels and forums to gather valuable insights.

How to Unstake ICP

The process of unstaking your ICP is extremely simple, involving only three steps:

Before you unstake, keep in mind that you need a minimum ‘Dissolve Delay’ of six months to earn rewards. Unstaking may also affect your age bonus.
Go to the staking dashboard and find ‘Start Dissolving.’ Click on it.
Confirm this by clicking ‘Yes, I’m sure’. And you will soon have your ICP coins back in your wallet.

Conclusion: What is ICP Staking?

ICP Staking offers holders a meaningful way to participate in network governance while earning rewards. By locking ICP tokens into neurons via the Network Nervous System (NNS), users gain voting power on protocol decisions and receive daily rewards proportional to their stake and participation.

Currently, ICP staking offers an annual yield of about 8%. However, that depends on the platform chosen to stake ICP. Some of the best platforms for staking this coin are the NNS app, Best Wallet, Binance, Ledger, and Bitrue. Whichever platform you choose, ensure that you understand the staking mechanism; assess the rewards, manage the dissolve delay, and stay informed on network updates.

See Also:

References

Ledger. “Staking Internet Computer (ICP).” Ledger, https://www.ledger.com/coin/staking/internet-computer
DFINITY Foundation. “4.4 NNS Governance and Staking.” Internet Computer Documentation, https://internetcomputer.org/docs/current/tutorials/developer-liftoff/level-4/4.4-nns-governance
Dfinity Foundation. “Neuron Staking.” Network Nervous System (NNS), https://nns.ic0.app/neurons/
Cong, Lin William. Staking, Token Pricing, and Crypto Carry. Kenan Institute of Private Enterprise, https://kenaninstitute.unc.edu/rethinc/wp-content/uploads/2022/03/Cong-Staking-and-Crypto-Carry.pdf
DFINITY Foundation. “What Is the Internet Computer?” Internet Computer Documentation, https://internetcomputer.org/docs/tutorials/developer-liftoff/level-0/ic-overview

FAQs

What is Internet Computer staking?

Internet Computer staking is the process of locking up ICP coins in the Network Nervous System (NNS) to participate in network governance and earn rewards.

How do I stake ICP tokens?

You can stake ICP by creating a ‘neuron’ in the NNS dApp, or by using supported platforms like Binance, Ledger, or Bitrue that offer staking services.

What are neurons in ICP staking?

Neurons are governance units created for users to stake ICP crypto. It allows users to vote on proposals that shape the future of the ICP.

How much can I earn from staking ICP?

Typically, you can earn an annual yield of around 8%, depending on the dissolve delay and the platform you use. But remember, these staking rewards vary.

What is dissolve delay in ICP staking?

The dissolve delay is usually referred to as the amount of time you choose to lock your staked ICP. A longer dissolve delay earns you higher rewards.

Can I unstake my ICP tokens anytime?

No, you must first set your neurons to dissolving mode. Once the dissolve delay completes, your tokens will be available for withdrawals.

Why you can trust 99Bitcoins

10+ Years

Established in 2013, 99Bitcoin’s team members have been crypto experts since Bitcoin’s Early days.

90hr+

Weekly Research

100k+

Monthly readers

50+

Expert contributors

2000+

Crypto Projects Reviewed

Manisha Mishra

Editor-in-Chief

Manisha has been deeply involved in the crypto industry for more than five years, specializing in blockchain and crypto research. Her knowledge spans across crypto, DeFi, DePIN, NFTs, and many other Web3 innovations. Read More

Read Manisha Mishra Articles