Polkadot nomination Pool: How to start staking DOT with just 1 DOT
Did you know that Polkadot nomination pools democratize DOT staking, allowing you to participate with just 1 DOT? That’s right! Pools let you combine your tokens with those of other users and nominate collectively. So, with just 1 DOT or 1 KSM, you can stake efficiently, in a decentralized and secure way on both Polkadot and Kusama.
In this article, we’ll walk you through everything you need to know about how Polkadot nomination pools work and how to join Stakely’s DOT nomination pool.
What is a nomination in Polkadot?
Polkadot’s NPoS (Nominated Proof-of-Stake) algorithm aims to maximize the total amount of tokens staked. However, in practice, the Polkadot staking system tends to favor nominators with larger DOT holdings.
Native nomination in Polkadot is not a passive process: you must choose validators, monitor their performance, and make sure you’re receiving rewards. Additionally, there’s a constantly changing active minimum stake. If you don’t meet this minimum, your DOT won’t generate any rewards.
In short: nominating doesn’t guarantee rewards!
Nomination pools, on the other hand, simplify this process by allowing multiple users to combine their tokens to nominate together. This means that even with just 1 DOT, you can stake efficiently and securely.
Pools that meet the active minimum threshold—like Stakely’s—enter the active set and distribute rewards proportionally among their members. Rewards and slashing penalties are distributed based on each member’s stake.
Differences between individual nomination vs. nomination pool
| Individual Nomination | Nomination Pool |
|---|---|
| Entry barrier: Min. 250 DOT | Entry barrier: Min. 1 DOT |
| Rewards can be auto-compounded or sent to any account | Rewards can be claimed manually or deposited back into the pool |
| If an active validator gets slashed, its nominators are affected | If a validator gets slashed, the entire pool is affected |
| You can bond and nominate DOT indefinitely | You can bond and nominate DOT as long as the pool exists |
| Unbonding: with option to redelegate | Unbonding: no option to redelegate |
| No participation limit | No participation limit |
| Anyone can claim rewards | You can choose to do it yourself or authorize someone |
| You remain the sole custodian | You remain the sole custodian |
| You can nominate up to 16 validators | Managed by the pool’s operator |
How to join Stakely’s DOT nomination pool: step-by-step guide
- Open the Polkadot Staking dashboard
- Select the “Polkadot” network and click “Connect”
- Connect your wallet: we’ll use Subwallet for this tutorial.
- Find the Stakely pool in the list by clicking “Browse Pools”
- Join Stakely’s pool by clicking “Join Pool”
- Enter the amount of DOT you want to stake
- Choose your reward configuration: a. If you select “Allow withdraw”, anyone can send your rewards to your account.
b. If you select “Allow Compound”, anyone can reinvest your rewards on your behalf.
c. If you select “Permissioned”, only you can claim your rewards. - Click “Join Pool” and approve the transaction in SubWallet.
Follow the tutorial on our YouTube channel.
Note: If you want to stake KSM, the steps are the same, but in step two, select the “Kusama” network.
Frequently asked questions about Polkadot nomination pools
Can any user join a nomination pool?
Yes, anyone can join a nomination pool as long as the “Join” option is enabled. After transferring the initial funds, the pool becomes active and allows users to bond their DOT. Rewards are distributed proportionally based on each member’s bonded amount.
How do I claim staking rewards?
To claim your staking rewards as a pool member, connect your wallet to Polkadot JS App (use the same account used to bond funds). Then, go to Staking > Accounts > Pooled, click the three dots on the right, and select “Withdraw claimable” to claim your available rewards.
Can pool members unbond and withdraw their funds?
Yes, pool members can unbond at any time to start the withdrawal process. After the 28-day unbonding period, they can use the “Withdraw” option to retrieve their funds, ending their relationship with the pool and allowing them to join another one.
Can pool members partially unbond their funds?
Yes, pool members can partially unbond their staked funds, with a maximum of 16 partial unbonds.
Is there slashing in nomination pools?
Yes, slashing affects all members bonded to the pool at the time it occurs. Just like with rewards, penalties are distributed proportionally based on each member’s stake.
What are the pool states and roles?
A pool can have three states:
- Open: open to new members.
- Blocked: closed to new members.
- Destroying: in irreversible shutdown process.
If your pool enters destroying state, unbond your tokens as soon as possible. After the unbonding period, you’ll be able to stake again in another pool.
When creating a pool from Polkadot JS App, all permissions are initially assigned to the depositor (creator), who can stake them to other accounts. Available roles include:
- Nominator: chooses the validators nominated by the pool.
- State-Toggler: can change the pool state and remove members (if the pool is blocked).
- Root: can change any role (including their own) and perform all nominator and state-toggler actions.
Start earning rewards today with Stakely’s DOT nomination pool. No complications, no surrendering custody of your funds, and starting with just 1 DOT.
