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CryptoSipho N.9h ago
Question

Is ETH staking yield 'real yield'? Trying to understand the risks

I keep seeing ETH staking described as a yield. Where does it actually come from, and what are the risks compared with, say, a money-market fund?

Also — how is staking income treated for tax in South Africa? (I know this isn't tax advice, just looking for the general idea.)

ETH/USD$3,245.73+3.41%
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3 comments
1,900 views

3 comments

  1. Ruan S.8h ago

    It comes from protocol issuance plus transaction fees/MEV. Risks: ETH price volatility, smart-contract and slashing risk, and liquidity if you use a lock-up.

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    1. Sipho N.7h ago

      So the yield is paid in ETH, which itself can drop 30%. That's the key difference.

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  2. Lerato D.Mentor6h ago

    On tax: SARS generally treats crypto rewards as income when received — speak to a registered tax practitioner for your situation.

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