Staking Revenue

Definition ∞ Staking revenue is the income earned by participants who lock up their digital assets in a proof-of-stake blockchain network to help validate transactions. These rewards are typically distributed in the native cryptocurrency of the network, proportional to the amount staked and the network’s inflation rate. It provides a passive yield for holders, incentivizing network security and participation. This mechanism compensates users for contributing to the operational integrity of the blockchain.
Context ∞ Staking revenue is a prominent feature in crypto news, particularly as proof-of-stake networks gain wider adoption and institutional interest. The profitability and sustainability of staking rewards are key factors for investors evaluating digital assets. Changes in network parameters or validator participation can impact the amount of staking revenue generated. Discussions often center on the regulatory treatment of staking income and its role in the overall tokenomics of a project.