OnStaking Report Highlights the Growing Competition in Proof-of-Stake Networks

The race to attract early validators and stakers is heating up among new blockchain ecosystems. According to a recent OnStaking report, emerging Layer 1 networks such as Sui, Berachain, and other high-performance chains are offering exceptionally high Annual Percentage Yields (APY) to incentivize early participation in their staking programs.

With established networks like Ethereum, Solana, and Cardano already dominating the staking landscape, these new entrants are leveraging aggressive reward mechanisms to bootstrap security, decentralization, and community engagement.

Why Are New Blockchains Offering Higher APY?

New proof-of-stake (PoS) blockchains face a chicken-and-egg problem: they need sufficient staked tokens to secure the network, but early adopters may hesitate to lock up assets without strong incentives. To overcome this, projects like Sui and Berachain are rolling out temporary high APY programs, sometimes exceeding 20-50%, compared to single-digit yields on more mature chains.

Key factors driving these high rewards include:

• Limited initial validator slots – Early stakers get a larger share of rewards.

• Token inflation incentives – New networks often allocate a higher portion of emissions to staking rewards.

• Risk compensation – Early participants take on higher uncertainty regarding network adoption and token value.

Sui’s Staking Strategy: Balancing Security and Scalability

Sui, a high-throughput blockchain developed by former Meta (Facebook) engineers, has quickly gained traction with its Move-based smart contracts and parallel transaction processing. Its staking model emphasizes decentralization while maintaining low latency.

Currently, Sui staking APY ranges between 10-20%, depending on validator performance and total stake locked. The network also implements a dynamic reward adjustment mechanism, ensuring that yields remain competitive as more participants join.

Berachain’s Unique Liquidity-Backed Staking Model

Berachain, an upcoming EVM-compatible chain with a strong focus on DeFi and liquidity efficiency, is taking a different approach. Instead of traditional staking, Berachain introduces "liquidity staking," where users can stake assets while still utilizing them in decentralized applications (dApps).

Early reports suggest Berachain’s staking APY could reach 30% or higher in its initial phase, making it one of the most attractive options for yield-seeking crypto investors.

Risks and Considerations for Early Stakers

While high APY opportunities are enticing, potential stakers should be aware of:

• Smart contract risks – New networks may have unaudited or experimental staking mechanisms.

• Token volatility – High inflation rates could dilute token value over time.

• Lock-up periods – Some chains enforce long unbonding periods, reducing liquidity.

Experts recommend diversifying staked assets across multiple networks to mitigate risks while capitalizing on early rewards.

Conclusion: The Future of Staking in New Blockchain Ecosystems

As the proof-of-stake model becomes the standard for blockchain security, new networks must innovate to compete. Sui, Berachain, and similar projects are setting a precedent by offering high APY staking rewards to attract early adopters.

For crypto investors, these opportunities present a chance to earn substantial yields while supporting emerging ecosystems. However, thorough due diligence remains essential to navigate the risks of early-stage staking.