Staking is a way to earn rewards (cryptocurrency) while helping strengthen the security of the blockchain network. You can unstake your crypto at any time, and your crypto is always yours.
You can stake from your Coinbase primary balance. Business accounts and funds stored in a vault aren’t eligible for rewards.
Accept User Terms | • You may be required to accept User Terms specific to the asset you’d like to stake |
Coinbase commission | • We take a commission on all rewards received • The return rate for our customers reflects this commission and the actual amount of your crypto that was staked • You can find our current commission in the Coinbase User Agreement |
Ownership of staked crypto | • You retain full ownership of your staked crypto at all times • You may be affected by protocol lockup periods |
Rewards balance | • Coinbase does not guarantee that you’ll receive staking rewards, any specific reward, or any staking return over time • All staking rewards are credited to your earning balance and appear as a transaction • Each reward will populate as a line item in your transaction history report |
Rewards payout | • Coinbase forwards rewards received from the blockchain, minus a transparent fee • The frequency of reward payouts varies by protocol |
Rewards value | • Determined by the protocol (such as Solana and Ethereum) • Proportional to how much you have staked • Can change over time due to validator performance, amount staked/stakers, and inflation and savings rates set by the network |
Risk | • Staked assets are locked until they are unstaked, which may take time depending on the network • Staked assets may be lost due to events such as validator or protocol failure • Staked assets must be unstaked before you can trade or transfer them • The unstaking process can take a few hours to a few weeks to complete • See Staking risks for more information |
Waiting periods | • Some protocols impose waiting periods before assets can be unstaked, sometimes up to 24 days • During the protocol unstaking period you will continue to earn rewards which you will see in the asset’s balance • You can ask us to unstake your assets at any time • In some cases you may have to wait until the protocol unbonding period is complete to transfer or sell your staked assets • Coinbase has a 2-day processing turnaround |
Taxes | • US customers who are subject to US tax reporting are required to report their earnings from staking rewards • If you earn over $600 in staking rewards will receive a 1099-MISC from Coinbase • You can learn more about the 1099-MISC on the official website of the IRS |
Staking APY
The staking APY displayed on the Coinbase platform reflects the recent payouts received from the relevant protocol, less Coinbase’s commission
To calculate the staking APY:
Coinbase consults on-chain data to determine the total amount that was earned by Coinbase stakers in a payout period.
Coinbase then divides this total amount earned by the total amount staked for that asset and the number of days in the payout period to determine an annual percentage rate (APR) (after accounting for Coinbase's commission).
Coinbase then averages these APRs over a recent time period -- for ETH looking back 7 days, and for other assets looking back 30 days.
Finally, Coinbase converts this APR into an annual percentage yield (APY), using the standard accounting formula: APY = (1 + apr/n )^n - 1 where n is the number of compounding periods of the relevant asset/protocol in a year.
‘Boosted’ rewards for Coinbase One subscribers are achieved through reducing the commission that Coinbase takes from the relevant protocol payout
USDC Rewards APY
The USDC Rewards APY displayed on the Coinbase platform is set by Coinbase
USDC Rewards is a loyalty program that is funded with Coinbase’s own funds
We reserve the right to change or discontinue USDC Rewards APY at any time by reasonable means of notice
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