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Staking & yield

Staking explained

Staking is the proof-of-stake equivalent of mining: you lock coins to validate transactions and receive a reward. That yield is not interest but payment for a service with real risks.

Dani OosterhuisWritten by Redacteur payments, GroningenUpdated Checked by the editorial desk

Where the yield comes from

Part is new issuance, part is transaction and priority fees. Stakers avoid dilution; non-stakers absorb it.

Always compute real yield: nominal reward minus net network inflation.

Ways to stake

Solo staking gives most control but requires 32 ETH on Ethereum and a reliable node. Delegation is simpler but adds counterparty risk.

Liquid staking gives a tradable receipt, stacking smart contract risk on top of validator risk and reinforcing centralisation.

  • Solo: maximum control, highest threshold
  • Delegation: easy, counterparty risk
  • Liquid staking: liquid, extra contract risk

Risks to understand

Slashing penalises double signing or prolonged downtime. Rare with a reliable operator, but not zero.

Exit queues can take days or weeks while the price keeps moving.

Staking yield calculator

See what staking nets you after commission, compounding and network inflation.

Inputs

Results

Net APR (after commission)

4.50 %

Net APY (compounded)

4.60 %

Real yield (after inflation)

2.55 %

Rewards year 1

46.025 coins

Average per day (year 1)

0.1261 coins

Ending balance

1,144.5273 coins

Value at flat price

€1,144.53

Growth of your stake

Risk

Staking is not a savings account. Slashing, validator downtime, unbonding periods, smart-contract bugs in liquid staking and price drops can all shrink your position. A high APR usually compensates high inflation or high risk. This is not investment advice.

Rounding and assumptions

We assume a constant APR, a flat price and equal periods; real networks vary daily. APY = (1 + net APR / n)^n − 1. Real yield is (1 + APY) / (1 + inflation) − 1. Figures are shown rounded to four decimals (coins) and two decimals (currency) while maths runs unrounded, so small differences with your wallet are normal. Taxes and transaction fees are excluded.

APY = (1 + APR/n)^n − 1

Frequently asked questions

Is staking risk-free income?

No: price risk, slashing risk, counterparty risk and liquidity risk during exit.

What is a normal staking yield?

Roughly two to eight percent per year depending on the network, denominated in the coin itself.

Do I report staking income?

Usually yes; treatment differs per country. See the Belgian and Dutch tax guide.

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