Solo validation
You operate the infrastructure and accept uptime, key-management and penalty risk. Requirements differ by network.
Staking · useful before yield
A reward is payment for a job and a risk.
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Proof-of-stake networks use committed tokens and validator rules to help order transactions. Staking rewards compensate participants; they are not interest guaranteed by a bank.
Delegated staking
You retain a wallet relationship while delegating stake to a validator under the network's design.
Exchange or custodian
A provider pools assets and handles the process, then passes on rewards after its terms and charges.
Liquid staking
A protocol issues a token representing a staked position, adding smart-contract, price and liquidity dependencies.
Read the rate backwards
What must be true for you to receive it?
Ask who operates the validator, who controls the keys, how the platform calculates the quoted rate and what can delay or reduce payment.
- • The token can fall much more than the reward rate
- • Unbonding or withdrawal queues can delay an exit
- • Validator faults can reduce rewards or cause penalties
- • A provider or smart contract can fail
- • A liquid-staking token can trade below its expected value
- • Frequent rewards create detailed tax records
UK tax: two moments can matter
HMRC can treat staking rewards received outside a trade as miscellaneous income. Record the token units and GBP value when each reward is received.
A later sale or swap can create a separate capital gain or loss using the appropriate acquisition cost. The facts and arrangement matter, especially for DeFi and liquid-staking transactions.
A better comparison
Compare the net reward after charges, exit time, custody, slashing treatment, legal entity and quality of tax records.
A live annual percentage rate is an input—not a verdict.