Staked ETH Yield

Definition ∞ Staked ETH yield is the return earned by participants who lock up their Ethereum tokens to secure the Ethereum proof-of-stake network. This yield represents the rewards distributed to validators for performing network operations, such as proposing and attesting to new blocks, and for participating in the consensus mechanism. The amount of yield is influenced by factors such as the total amount of ETH staked, network activity, and the protocol’s issuance rate. It serves as an incentive for individuals and entities to contribute to the network’s security and decentralization.
Context ∞ Staked ETH yield is a key economic driver for participation in the Ethereum ecosystem following its transition to proof-of-stake. Discussions often concern the volatility of this yield, the implications of liquid staking derivatives, and the overall security budget of the network. News frequently reports on changes in staking participation rates, yield fluctuations, and the impact of protocol upgrades on validator rewards.