Definition ∞ Base asset yield represents the fundamental rate of return earned directly from holding or staking a primary digital asset. This yield originates from the intrinsic economic functions of a blockchain protocol, such as block rewards for validators or transaction fees distributed to participants. It is distinct from additional returns gained through complex decentralized finance strategies built atop the foundational asset. The calculation often reflects the network’s security budget and participation incentives.
Context ∞ The concept of base asset yield is central to understanding the economic viability and security models of proof-of-stake blockchains. Debates often focus on the long-term sustainability of these yields, their impact on inflation, and how protocol upgrades might alter these reward structures. News frequently covers changes in base yields as a key indicator of network health and validator interest.
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