Staking Rewards
economics · consensus
Token payouts earned by validators or delegators for participating in proof-of-stake security or protocol incentives.
Staking rewards compensate validators and delegators for helping secure a proof-of-stake network or supporting a protocol’s incentive design. Sources can include new issuance, transaction fees, MEV, and temporary incentive programs.
Reward rates change as total staked supply, issuance schedules, validator performance, fees, and protocol rules change. Real returns can be lower after inflation, taxes, slashing, lockups, and token price movements.
Related terms
Staking
→Locking or delegating tokens to support a proof-of-stake network or protocol in exchange for potential rewards.
consensus · defi
Proof of Stake (PoS)
→A family of consensus mechanisms in which validators commit stake to propose, attest to, and finalize blocks.
consensus · blockchain
Validator
→A consensus participant that proposes, verifies, or attests to blocks, often after bonding stake in a proof-of-stake network.
consensus · staking
Inflation
→A sustained rise in the general price level, reducing a currency's purchasing power over time.
economics · macroeconomics