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 |
Ownership of staked crypto | • You retain full ownership of your staked crypto at all times |
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 primary 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 asset |
Rewards value | • Determined by the protocol (such as Solana and Ethereum) • Proportional to how much you have staked • Can change over time due to network factors (including total amount staked to the network and/or total number of validators) and inflation and savings rates set by the network |
Risk | • Staked assets can't be traded or transferred until they're unstaked and the unstaking process completes • The unstaking process can take a few hours to a few weeks to complete • Staked assets may be lost due to events such as validator or protocol failure • Coinbase may unstake your assets if your eligibility status changes • Protocol lockup periods may affect unstaking • See Staking risks for more information |
Waiting periods | • Coinbase follows protocol-imposed waiting periods for earning rewards and unstaking • Some assets have a staking wait time before you start earning rewards • After the initial waiting period, you can unstake assets anytime but can't transfer or sell them until the unstaking wait time is complete • Unstaking wait times include the protocol's wait time plus Coinbase's processing time • Some assets earn rewards during the unstaking wait time |
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 |
Asset | Minimum Balance Needed | Earning Wait Time (Approximate) | Rewards Payout Frequency* | Unstaking Wait Time (Approximate) | Earns Rewards While Unstaking? |
|---|---|---|---|---|---|
Cosmos (ATOM) | 0.0001 ATOM | No wait | Every 7 days | ~25 days | No |
Ethereum (ETH) | No minimum balance | Variable | Every 3 days | ~13 days | Yes (Rewards earned for part of the unstaking period) |
Tezos (XTZ) | 0.0001 XTZ | 24 days | Every 3 days | ~2 days | No |
Cardano (ADA) | $1 worth of ADA | 18 days | Every 5 days | ~2 days | No |
Solana (SOL) | $1 worth of SOL | 1 day | Every 5 days | ~5 days | Yes (Rewards earned for the entire unstaking period) |
Polkadot (DOT) | No minimum balance | 2 days | Every 1 day | ~30 days | No |
MATIC (POL) | No minimum balance | No wait | Every 5 days | ~8 days | No |
Avalanche (AVAX) | No minimum balance | No wait | Initial payout in 16-20 days, then every 4 days | ~9 days | Yes (Rewards earned for the entire unstaking period) |
* Initial payout may take up to 25 days (from the time earning begins). Subsequent payouts will be at the specified frequency.
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 of on-chain rewards earned
This total amount earned is then divided 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 -- looking back 7 days for ETH, 30 days for DOT, MATIC, and SOL, and 60 days for ADA, ATOM, and XTZ
Finally, this APR is converted into an annual percentage yield (APY), using the standard accounting formula: APY = (1 + APR/n )^n - 1 where n is the average number of funding periods per year for the relevant asset/protocol
‘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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