What staking means
Staking means committing tokens to a network or a program for a period in exchange for rewards. On proof-of-stake networks, staked tokens help secure the chain. In presales and projects, staking can also describe a program that pays rewards on a position under the project's own rules.
APY vs. APR
APR (annual percentage rate) is a simple yearly rate without compounding. APY (annual percentage yield) includes the effect of compounding — rewards earning further rewards. For the same underlying rate, APY is always equal to or higher than APR.
The conversion is: APY = (1 + APR ÷ n)ⁿ − 1, where n is the number of compounding periods per year.
| APR | Compounded monthly (APY) | Compounded daily (APY) |
|---|---|---|
| 10% | 10.47% | 10.52% |
| 50% | 63.21% | 64.82% |
| 100% | 161.30% | 171.46% |
Turning an annual APY into a monthly figure
Dividing APY by 12 overstates the monthly rate, because APY already contains compounding. The equivalent monthly rate is (1 + APY)^(1/12) − 1. For example, 50% APY corresponds to about 3.44% per month, not 4.17%.
Very high rates behave the same way: an annual figure is a yearly projection. It is never the amount credited each month.
Questions to ask about any staking rate
- What is paid out? Rewards in the same token are exposed to that token's price.
- Is the rate fixed or variable? Many rates change with stages, participation or time.
- Is there a lock-up? Can you withdraw at any time, and are there penalties?
- Where do rewards come from? Network inflation, fees or a project's reserve.
- What happens at launch? For presale staking, check when positions and rewards can be claimed.
Example: stage-based presale staking at DPC
The DPC presale offers an optional buy-and-stake purchase in the dashboard. The planned annualized rate depends on the presale stage: Stage 1 starts at 1200% APY and the final stage is planned at 50% APY. Monthly projections in the dashboard are derived from that annual rate. Details are on the DPC staking page.
See how a stage-based rate is presentedThe DPC staking page lists the rate per stage and how the dashboard projects it.
View DPC stakingFrequently asked questions
What is the difference between APY and APR?
APR is a simple annual rate without compounding. APY includes compounding, so for the same underlying rate APY is equal to or higher than APR.
Can I divide APY by 12 to get the monthly rate?
That overstates it. Because APY already includes compounding, the equivalent monthly rate is (1 + APY)^(1/12) − 1. For 50% APY that is about 3.44% per month.
Is a high staking APY guaranteed?
No. APY describes a planned or current rate. Rates can change, and rewards paid in the same token depend on that token's price.
What does stage-based APY mean?
In some presales the staking rate depends on the stage in which you bought: earlier stages are offered a higher planned rate than later ones.
This guide is general information, not financial, legal or tax advice. Crypto assets are volatile and can lose value. Check the rules that apply in your country.