Definition
Staking rewards are payments earned for participating in a proof-of-stake network’s validation process, either directly or through an eligible staking arrangement. They compensate consensus participation under the protocol’s rules rather than guarantee a fixed investment return.
How It Works
The amount may depend on active stake, validator performance, network participation and fees. A service may deduct commission before distributing rewards. Distribution can increase a token balance, accumulate separately for claiming or raise the value represented by a receipt token. Those accounting methods should not be confused with different sources of income.
Key Considerations
A quoted annualized rate extrapolates assumptions and may change. More tokens do not necessarily mean a gain measured in fiat currency. Penalties, operating costs and withdrawal delays affect realized results, while newly issued rewards can dilute unstaked holders. Compare gross and net rewards and check whether reinvestment is included in the displayed rate.