How Staking Rewards Compound

Staking rewards compound when earned rewards are added to the staked principal and earn further rewards. The compounding frequency is set by the network — daily compounding beats monthly at the same nominal rate. This calculator projects both the reward stream and the effective APY your stake actually earns.

Yield vs Real Return

A 7% staking APY looks attractive, but the real return is APY minus the token's price change and network inflation. A token that falls 30% in a year turns a 7% nominal yield into a 23% loss. Evaluate staking rewards in dollar terms — as this calculator does — not just percentage terms.

Risk Checklist Before Staking

Confirm the unbonding period, slashing conditions, and reward distribution schedule. Understand whether the yield is paid in the staked asset or a different token. Check that the validator is reliable and the protocol audited. Never stake more than you can afford to lock away for the full unbonding window.