Mining secures proof-of-work networks like Bitcoin by expending electricity on specialized hardware; staking secures proof-of-stake networks like Ethereum by locking coins as collateral to validate blocks. Mining returns hinge on hashprice, electricity rate, and machine efficiency. Staking returns hinge on protocol reward rate (APR), fees, and operational risks such as slashing and exit queues. In 2025, typical ETH staking yields…
Ethereum staking rewards come from two places: consensus-layer rewards for participating in proof-of-stake, and execution-layer rewards (priority fees and MEV) when your validator proposes a block. Shapella (April 12, 2023) enabled partial and full withdrawals, so capital isn’t “one-way” anymore. In 2025, the Pectra upgrade further improved the staking experience, including raising the maximum effective balance per validator (EIP-7251) to…
In proof-of-stake (PoS) networks, validators lock up crypto (“stake”) to help order transactions and produce blocks. In return, they earn protocol rewards and a share of fees; misbehavior can be penalized (“slashing”). On Ethereum, for example, validators stake ETH and earn rewards from issuance, transaction fees, and MEV (maximal extractable value).
How staking rewards are generated
Rewards generally come from three sources:…