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Staking APR

1 min read
Pronunciation
[stay-king A-P-R]
Analogy
Staking APR is like the stated interest rate on a loan or savings account before compounding is applied.
Definition
Annual Percentage Rate: the simple interest rate earned on staked assets over a year, excluding the effect of compounding.
Key Points Intro
Staking APR reflects earnings through:
Key Points

Base issuance: Annual token inflation rate.

Fee distribution: Share of transaction fees.

No compounding: Does not include interest-on-interest.

Predictable rate: Easier forecasting than APY.

Example
A network advertises 6% APR on staked tokens; over one year, a 100 TOKEN stake yields 6 TOKEN before compounding.
Technical Deep Dive
APR = (total rewards over period / principal) × (365 / days staked). On-chain analytics track reward events and principal to compute realized APR. APR is useful for short-term comparisons when compounding frequency is low.
Security Warning
APR omits compounding benefits and potential slashing costs; use APY for true yield estimation.
Caveat
APR understates effective yield when rewards are frequently restaked.
Related Terms
Staking APY

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