Staked Rewards

Definition ∞ Staked rewards are the incentives distributed to participants who lock up their digital assets to support a blockchain network’s operations, typically through a proof-of-stake consensus mechanism. These rewards compensate stakers for their contribution to network security and transaction validation. They represent a key mechanism for earning passive income within the cryptocurrency space.
Context ∞ Staked rewards are a significant consideration for investors in proof-of-stake cryptocurrencies, influencing decisions on asset allocation and network participation. News reports often detail changes in staking yields, the introduction of new staking services, or discussions around the security implications of large staking pools. Understanding staked rewards is essential for comprehending the economic incentives that underpin many blockchain networks.