Staking Rewards
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
4 linkedExplore connected entries beyond the alphabetical index.
Staking
→Locking or delegating tokens to support a proof-of-stake network or protocol in exchange for potential rewards.
Proof of Stake
→A consensus method where validators use staked cryptocurrency to create blocks and secure the network.
Validator
→A consensus participant that proposes, verifies, or attests to blocks, often after bonding stake in a proof-of-stake network.
Inflation
→A sustained rise in the general price level, reducing a currency's purchasing power over time.
All terms and definitions may update as the Cryptionary improves.
