APR (annual percentage rate) is the simple yearly reward rate without compounding. APY (annual percentage yield) includes compounding, meaning rewards that earn rewards of their own. For the same underlying rate, APY is always equal to or higher than APR. So 7% APR compounded every few days works out to roughly 7.25% APY. When comparing staking options, make sure you're comparing APR with APR, or APY with APY.
This guide explains the jargon, shows how to calculate your real staking return, and explains why a high headline number isn't always the best deal. New to staking? Start with what is crypto staking.
APR vs APY in one example
Say you stake 1,000 coins at 7% APR.
- Without compounding (APR): after one year you have 1,000 + 70 = 1,070 coins.
- With compounding every 2–3 days, like Solana epochs (APY): each reward is added to your stake and starts earning, so after one year you have about 1,072.5 coins, around 7.25% APY.
The formula:
APY = (1 + APR / n) ^ n − 1
where n is the number of times rewards compound per year. Solana compounds once per epoch (roughly 150+ times a year). On networks where you must claim and restake manually, like Tron, you only compound as often as you actually do it.
Where staking rewards come from
Real staking rewards have real sources. Knowing them helps you spot unrealistic promises:
- New coin issuance (inflation): the protocol creates new coins and pays them to validators and stakers.
- Transaction fees: users pay fees, and part of them goes to validators.
- MEV and tips: extra payments for including transactions in a particular order (on networks like Ethereum and Solana).
Because these sources are limited, realistic network staking rates sit in the low-to-mid single digits on major coins. A product offering 50%, 300% or "1% daily" is not paying network staking rewards. It's either taking very large hidden risks or it's a scam. See is crypto staking safe?
Nominal vs real yield: the inflation catch
If a network pays 7% staking rewards mostly by issuing new coins, and the total supply grows 5% a year, then non-stakers are being diluted and your real gain in network share is closer to 2%. That's not a reason to avoid staking. It's actually a reason to stake if you hold the coin anyway, because otherwise inflation dilutes you. But it explains why staking alone doesn't make you richer if the price doesn't hold.
What reduces your actual return
The rate you see is rarely the rate you take home. Subtract:
- Validator commission: for example, 7% gross with 10% commission = 6.3% to you.
- Provider fees: in custodial or pooled staking.
- Network fees: for staking, claiming and unstaking. Tiny on Solana, Tron and BNB Chain; noticeable on Ethereum mainnet for small amounts.
- Time not earning: stake that's activating or unbonding usually doesn't earn.
- Downtime: poor validator performance means missed rewards.
How to calculate your staking rewards
Quick estimate for one year:
Rewards ≈ Amount staked × Rate × (1 − Commission)
Example: 50 SOL × 7% × (1 − 0.05) ≈ 3.3 SOL per year, a bit more with compounding.
To estimate in dollars, multiply by the coin price, but remember the price will change. Over a year, the price move usually matters far more than the staking rate.
For worked examples on SOL, ETH, TRX and BNB, see our staking rewards calculator guide.
Comparing staking options: a checklist
When you see two staking rates, ask:
- Is it APR or APY? Convert to the same basis before comparing.
- Is commission or a fee already subtracted?
- Where do the rewards come from? Network rewards, or something riskier?
- How long is the unstaking period?
- Who holds the keys? Compare custodial vs non-custodial staking.
A slightly lower rate with your own keys, a reliable validator and a short unbonding period is often the better deal.
Staking rewards in Virtex Wallet
Virtex Wallet shows the estimated reward rate, validator commission and unstaking period before you confirm a stake, across Solana, Ethereum, Tron, BNB Chain and other EVM proof-of-stake networks. In non-custodial mode, you can verify every reward on the network's public explorer.
Guides by network: stake SOL · stake ETH · stake TRX · stake BNB
Common questions
Is a higher APY always better?
No. A higher APY can come with higher risk, longer lock-ups or a riskier source of rewards. Compare the whole package.
Why does my staking rate change?
Network rates move as total stake, fees and issuance change, and your validator's performance and commission can change too.
Are staking rewards paid daily?
It depends on the network: per epoch on Solana (every 2–3 days), continuously building up on BNB Chain and Ethereum, and claimable once every 24 hours on Tron.
Are staking rewards taxed?
In many countries they're treated as income when received. Check your local rules.
See the real numbers before you stake: download Virtex Wallet on Google Play. This article is general information, not financial advice.
