Staking

Staking — posting coins to help validate a proof-of-stake network (ETH, SOL) in exchange for rewards paid in newly issued coins plus fees. The headline number is real; the trap is the denominator: if the network pays stakers 7% by inflating supply 6%, the real yield is ~1% and non-stakers are simply being diluted. Formula that survives the course: real staking yield ≈ nominal yield − network inflation. Stack on principal volatility (−70–90% drawdowns dwarf any yield), custodial risk, and slashing, and the verdict is: speculation with a coupon attached — sized as speculation, never as income foundation.

First used in: 2.5 · The speculative sleeve