How staking rewards work

Staking rewards come from the network itself: newly created tokens and the fees people pay to use it. They are paid to validators for honest work and shared with the people who delegate to them, so they rise and fall with what the validator earns.

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Where rewards come from

A proof-of-stake network pays its validators from two sources:

  • New tokens the network creates on a schedule (inflation).
  • Fees people pay to send transactions and use applications.

Why they change

The amount depends on how busy the network is, how much is staked across it in total, and how well the validator performs. A validator that misses blocks earns less. That is why rewards are never fixed and change from day to day.

How they are shared

Most of what a validator earns goes to its delegators, in proportion to what each one delegated. The operator keeps a commission to pay for running the infrastructure.

How each network pays

Every network has its own rhythm. Cosmos Hub builds up rewards with every block, Ethereum every epoch of about 6.4 minutes, Polkadot once a day. Evernodes settles your share every 24 hours from when you delegated, whatever the network's own schedule.

Questions people ask

Are staking rewards guaranteed?
No. Rewards follow what the validator earns, which depends on the network and the validator's performance, so they vary and can fall.
How often are rewards paid?
It depends on the network, from every few seconds to every few days. Evernodes credits members once every 24 hours.