What is APY and what do staking rewards depend on?

APY means Annual Percentage Yield and represents annual earnings with compounded interest. In simple terms, it is the estimated income you can earn with staking TON for a year.

APY is not constant and can change for several reasons:

  • Network-related: TON inflation rate, the number of blocks produced, the total number of validators, network's total stake.
  • Validator-related: if your validator misses block creation or behaves maliciously, this will reduce rewards and APY.
  • Liquid staking platform-related: platform fees, staking periods, and compounding periods might affect APY.

Remember that APY is always estimated and can change over time. Also, APY is calculated in tokens, so the resulting earnings in fiat equivalent might be different because of token price fluctuations.

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