What is staking?.

A blockchain without a central operator has to make attacks expensive. Proof-of-work does that with electricity and machines; proof-of-stake does it with capital: validators post coins as a bond and lose part of it if they cheat or stay offline.

Each round the network randomly picks validators to propose and attest blocks. The more coins staked, the higher the chance of being selected — and the larger the bond at risk.

The return usually has three layers. Issuance: the protocol mints new coins to pay validators. Transaction fees: what users pay to transact. And on networks like Ethereum, the value of blockspace auctions (MEV and tips).

Only the second and third layers are genuine payments from users. The first is dilution: anyone not staking sees their share of the supply fall. That is why a nominal staking yield is not the same as profit.

The number platforms show is almost always gross and denominated in coins. Subtract network inflation, your validator or platform commission and tax, and what remains is the real return.

A network paying 4 percent while issuing 3 percent a year, with a platform taking 15 percent commission, yields very little in real terms. Always work with the real figure, not the banner.

Ethereum typically pays a few percent a year depending on how much ether is staked in total. Solana, Cardano, Polkadot, Cosmos and Avalanche show higher nominal rates, but also higher issuance.

A high percentage is not a quality mark. A network paying 20 percent while issuing 18 percent is largely paying you with your own dilution.