Rewards

Since staking performs a critical role in securing protocols, stakers are rewarded for their commitment. Rewards come from two different sources.

• Inflation

  • The protocol either issues new coins or allocates a portion of the locked supply for stakers.

• Transaction fees

  • Fees paid by users of the protocol are distributed to stakers.

For some protocols, maximal extractable value (MEV) is also a major source of staking rewards. Only Ethereum and Solana have meaningful staking rewards flowing from MEV.