How to use the Staking Rewards
- Enter the amount staked and the advertised APR.
- Set how often rewards are compounded or restaked.
- Enter the validator commission percentage.
- Read the projected token balance and fiat value at your chosen horizon.
How the calculation works
APR is the simple annual rate; APY is what you get once rewards are restaked, given by (1 + APR/n)^n − 1 for n compounding periods. On networks with automatic compounding the gap is meaningful — 12% APR compounded daily is 12.75% APY. Validator commission is deducted from rewards before they reach you, so a 5% commission on 12% APR leaves 11.4%.
Two risks sit outside the arithmetic. Unbonding periods lock your tokens for days or weeks after you request withdrawal, during which you cannot sell — a real cost in a falling market. And slashing penalises validator misbehaviour or downtime by confiscating a portion of the stake, which is why validator selection matters more than chasing the top advertised rate. Rewards are also usually taxable as income at the moment of receipt.
APY = (1 + APR/n)^n − 1 ; final tokens = staked × (1 + APY × (1 − commission))^yearsSource: Standard APR-to-APY compounding conversion applied to proof-of-stake reward mechanics.
Worked example
Staking 8,000 tokens at 11% APR, compounded daily, 6% validator commission, for one year.
- APY = (1 + 0.11/365)^365 − 1 = 11.63%.
- After commission = 11.63% × 0.94 = 10.93%.
- Rewards = 8,000 × 0.1093 = 874 tokens.
- Ending balance = 8,874 tokens.
874 extra tokens over the year — worth whatever the token trades at, which may be more or less than today.
Frequently asked questions
Is staking risk-free?+
No. Token price can fall, unbonding locks your funds, and slashing can cut your stake if your validator misbehaves.
What is the difference between APR and APY?+
APR ignores compounding; APY includes it. Restaked rewards make APY the realistic figure.
Are staking rewards taxable?+
In most jurisdictions they are income at the fair value on receipt, with a later capital gain or loss on disposal.
How do I choose a validator?+
Weigh commission against uptime history, self-stake and decentralisation — not just the headline rate.
Last reviewed August 31, 2026. We review this page whenever the underlying formula, tax year, published rate or standard changes.