- Native staking offers security and simplicity, but blocks tokens, which limits liquidity and defect use during the staking period.
- Liquid staking via Stiota offers flexibility and tradability, but carries additional risks from smart contracts and may cause fees.
IOTA builds its staking offer and offers two procedures to earn premiums: Native Staking and Liquid Staking via Stiota. The options have different approaches on how investors can support the network and at the same time manage liquidity and risk.
In view of the current market dynamics of IOTA, the knowledge of the nuances between native and liquida staking is increasingly important for owners who want to optimize their returns and flexibility.
Native Staking
Simple and secure
Locked until you unstake
Great for holders who just want to stake and hold.
2/4— Swirl (@swirlstake) June 17, 2025
Native Staking is the traditional method in which token owners block their IOTA tokens in order to secure the network and take part in finding consensus. Through native staking, users earn rewards that are directly bound by their contribution to network security. The process is simple: As soon as the tokens are used, they remain closed until the owner decides to remove the use, which can require a waiting time.
The main advantage of native staking lies in its safety and simplicity. There are no intermediate tokens or complex protocols, which reduces potential risks related to weaknesses of smart contracts. This method is particularly suitable for owners who prefer a long-term, passive investment approach without having to move or use their tokens during the staking period.
However, the lock-up character of native staking means that the tokens cannot be used for other purposes during staking. This restriction limits access to decentralized financial applications (Defi) or trade options and can reduce capital efficiency in volatile markets.
Liquid Staking: More flexibility
Liquid Staking solves the liquidity restrictions of native staking by allowing users to stake their IOTA tokens and at the same time keep access to their value in a tradable form. When tokens are used via Liquid Staking, the users receive extended tokens called Stiota, which act as a claim to the underlying, which are based on the underlying assets.
These stiota tokens can be transferred freely, traded or used in DEFI protocols without having to wait a stir in. This ability offers owners more flexibility to react to market changes, achieve returns or diversify their portfolio while they continue to receive staking rewards.
Despite these advantages, the liquid staking harbors additional risks. The creation and management of Stiota is based on intelligent contracts or services of third parties, which exposes users to potential security gaps or failures of counterparties. In addition, liquid staking is often associated with fees or slips that do not occur in native staking.
IOTA: Current market situation
IOTA is currently being traded by $ 0.1607 and has dropped by 2.53% in the last 24 hours. The market capitalization is approximately $ 616.92 million, with 3.83 billion tokens in circulation. The trading volume has dropped by over 11%, which indicates a lower market activity and possible phases of consolidation.
The price volatility was characterized in the last 24 hours by fluctuations and a general downward trend. This market environment could cause investors to rethink their liquidity needs and their risk to risk when choosing a method of operational method.
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