Staking reward

A staking reward is the compensation a participant may receive for helping to secure and operate a proof-of-stake blockchain by staking tokens. Rewards typically come from newly issued tokens, transaction fees, or both, and are distributed according to the network’s protocol rules. The amount can change over time based on factors like total participation and network settings.

A common misconception is that staking rewards are like fixed interest; they are variable, not guaranteed, and can be reduced by penalties or fees. In many jurisdictions, received rewards may also be a taxable event. This entry is educational, not financial or tax advice.