Sei Network released an educational guide on staking rewards January 29, positioning itself within the broader proof-of-stake conversation as yields across major chains continue their multi-year compression trend.
The timing coincides with a broader cooling in crypto yield products. After two explosive years for crypto ETFs, Binance just rolled out new yield arena products with both flexible and locked options — a sign that centralized players are competing harder for staking-adjacent capital.
Where Yields Actually Stand
The staking landscape heading into 2026 shows significant dispersion. Cosmos (ATOM) validators can still pull north of 21% APR, while Polkadot sits around 12% and Solana near 6.77%. Ethereum? Roughly 2.87-3%, though some estimates stretch to 6% depending on MEV extraction and validator efficiency.
These aren’t guaranteed returns. Sei’s guide correctly emphasizes that headline APY means nothing if the underlying token dumps 50%. Net returns — rewards minus price depreciation — separate profitable stakers from bagholders.
What Sei’s Pitching
The guide reads like a primer for newcomers, but Sei weaves in its technical specs: parallelization for handling concurrent transactions, ~400ms finality, and EVM compatibility. Standard L1 marketing, but the underlying argument holds merit — chains with actual usage tend to generate fees that support rewards beyond pure inflation.
Sei doesn’t disclose its own staking APR in the guide, which is notable. The focus stays on education rather than yield promises.
The Real Checklist for 2026
Forget chasing double-digit APYs without context. Here’s what experienced stakers actually evaluate:
Inflation vs. real yield: High rewards funded purely by token minting dilute your holdings. Look for chains where transaction fees contribute meaningfully to validator rewards.
Unbonding periods: Some networks lock you up for weeks. When markets move fast — Bitcoin’s trading near $89K with regulators advancing new exchange licensing — liquidity matters.
Slashing risk: Your validator goes offline or acts maliciously? You could lose principal, not just miss rewards.
Liquid staking trade-offs: Protocols like Lido let you stake ETH while holding stETH for DeFi plays. Convenient, but you’re stacking smart contract risk on top of validator risk.
Tax Complications Loom
Congress is actively discussing staking tax reform, including potential elective deferral for income recognition. Current rules treat staking rewards as taxable income when received — even if you’re locked up and can’t sell. Legislative changes could reshape the math significantly for U.S. stakers.
The bottom line? Sei’s guide offers solid fundamentals for beginners, but the real message is broader: in 2026, sustainable staking means finding chains people actually use, not just chasing the fattest APY number on a comparison chart.
