Staking Rewards#
Understanding how staking rewards work on Solana and Marinade.
| Key Info | Value |
|---|---|
| Current APY | ~7-8% |
| Marinade Fee | 0% |
| Reward Frequency | Every epoch (~2 days) |
| Compounding | Automatic |
| First Rewards | 2-4 days after staking |
How Solana Staking Rewards Work#
Solana uses an inflationary model to reward stakers:
graph LR
A[Inflation] --> B[New SOL Created]
B --> C[Distributed to Validators]
C --> D[Validators Keep Commission]
D --> E[Rest Goes to Stakers]
Inflation Schedule#
| Period | Inflation Rate |
|---|---|
| Initial | 8% annually |
| Current (~2026) | ~4-5% |
| Long-term target | 1.5% |
Inflation decreases 15% per year until reaching the long-term target.
Reward Calculation#
Your rewards depend on:
- Amount staked - More stake = more rewards
- Total network stake - Higher participation = lower individual APY
- Validator performance - Uptime and vote success
- Validator commission - Fee taken by validator
Example Reward Calculation
Assuming 7.5% APY and 100 SOL staked:
| Period | Rewards | Total Value |
|---|---|---|
| Per epoch (~2 days) | ~0.041 SOL | 100.041 SOL |
| Per month | ~0.625 SOL | 100.625 SOL |
| Per year | ~7.5 SOL | 107.5 SOL |
Note: Actual rewards vary based on network conditions and validator performance.
Rewards with Marinade#
Liquid Staking (mSOL)#
Rewards are reflected in the mSOL exchange rate:
Day 1: 1 mSOL = 1.05 SOL
Day 3: 1 mSOL = 1.0502 SOL (rewards accrued)
Day 30: 1 mSOL = 1.055 SOL
Benefits:
- No claiming required
- Automatic compounding
- Rewards visible as exchange rate increase
- Tax-efficient in some jurisdictions
Native Staking#
Rewards are added directly to your stake accounts each epoch:
Epoch 500: Stake account balance = 100.000 SOL
Epoch 501: Stake account balance = 100.019 SOL (rewards)
Epoch 502: Stake account balance = 100.038 SOL
Benefits:
- Direct ownership of rewards
- No smart contract risk
- PSR protection
Current APY#
Check current staking yields:
| Source | Link |
|---|---|
| Marinade App | app.marinade.finance |
| APY API | apy.marinade.finance |
| Staking Rewards | stakingrewards.com |
Typical APY: 7-8% (varies with network conditions)
Reward Timing#
Epoch Schedule#
| Event | Timing |
|---|---|
| Epoch duration | ~2 days |
| Rewards distributed | End of each epoch |
| Stake changes applied | Start of next epoch |
When You Start Earning#
graph LR
A[Stake SOL] --> B[Wait for Epoch End]
B --> C[Stake Activates]
C --> D[Earning Rewards]
D --> E[Rewards Each Epoch]
New stakes begin earning in the epoch after they become active (warmup period).
Tracking Rewards#
Using the App#
- Visit app.marinade.finance
- Connect your wallet
- View dashboard for rewards summary
Using APIs#
Staking Rewards API:
APY API:
On-Chain Verification#
For native staking:
Reward Optimization#
Maximize Your APY#
| Strategy | Impact |
|---|---|
| Use Marinade | Automatic validator optimization |
| Stay staked | Compounding effect |
| Avoid frequent unstaking | Skip warmup periods |
| PSR protection | Avoid validator underperformance losses |
PSR (Protected Staking Rewards)#
Marinade's PSR ensures you receive expected yields:
- Validators post bonds as collateral
- If a validator underperforms, bond covers shortfall
- You receive expected rewards regardless
See PSR Documentation for details.
Tax Considerations#
Not Tax Advice
Consult a qualified tax professional for your jurisdiction.
General Considerations#
| Method | Tax Event |
|---|---|
| mSOL | Potentially taxable on exchange (varies by jurisdiction) |
| Native | Rewards may be taxable when received |
| Unstaking | May trigger capital gains/losses |
Reporting Tools#
Use the Staking Rewards API for reward history:
- Export transaction data
- Calculate rewards per period
- Generate reports for tax filing
Compounding#
mSOL Auto-Compounding#
mSOL rewards compound automatically:
Initial: 100 SOL staked
Year 1: ~107 SOL value (7% APY)
Year 2: ~114.5 SOL value (compounded)
Year 3: ~122.5 SOL value (compounded)
Native Staking Compounding#
Native staking also auto-compounds:
- Rewards added to stake account
- Increased stake earns more rewards
- No manual action required
Comparing Yields#
| Factor | Liquid Staking | Native Staking |
|---|---|---|
| Base APY | ~7-8% | ~7-8% |
| Protocol Fee | 0% | 0% |
| PSR Protection | Yes | Yes |
| Additional DeFi Yield | Yes (variable) | No |
FAQ#
Why is my APY different from advertised?
APY varies based on:
- Network conditions
- Validator performance
- Commission rates
- When you staked (partial epoch)
Do rewards compound?
Yes, both mSOL and native staking auto-compound. No action required.
When do I start earning?
After your stake activates (start of epoch following your deposit). First rewards arrive at the end of that epoch.
Can I lose my staking rewards?
Without PSR protection, you could miss rewards if validators underperform. With Marinade's PSR, validator bonds compensate you for any shortfall, so you always receive expected yields.
Is there a minimum amount to earn rewards?
No minimum, but very small stakes (under 0.01 SOL) may be uneconomical due to transaction fees.
How do mSOL rewards work if I'm using it in DeFi?
The mSOL you hold in DeFi protocols still appreciates in value. When you eventually convert back to SOL, you'll receive more SOL than you originally staked.
What's the difference between APY and APR?
- APR (Annual Percentage Rate): Simple interest without compounding
- APY (Annual Percentage Yield): Includes compounding effect
Marinade reports APY since rewards automatically compound.
Next Steps#
| Action | Link |
|---|---|
| Start staking | Quickstart |
| Compare staking options | Staking Overview |
| Learn about PSR | Protected Staking Rewards |
| Track rewards via API | Staking Rewards API |