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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:

  1. Amount staked - More stake = more rewards
  2. Total network stake - Higher participation = lower individual APY
  3. Validator performance - Uptime and vote success
  4. 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:

Text Only
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:

Text Only
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#

  1. Visit app.marinade.finance
  2. Connect your wallet
  3. View dashboard for rewards summary

Using APIs#

Staking Rewards API:

Bash
curl "https://staking-rewards-facade.marinade.finance/v1/rewards?wallet=YOUR_WALLET"

APY API:

Bash
curl "https://apy.marinade.finance/v1/apy"

On-Chain Verification#

For native staking:

Bash
solana stakes --withdraw-authority YOUR_PUBKEY

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:

Text Only
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