# Staking yield is not income: how to report it honestly

URL: https://www.caijing188.com/staking-yield-is-not-income/
Published: 2026-10-18T14:09:39+08:00 | Updated: 2026-10-27T22:10:00+08:00
Verified: 2026-10-27

## Quick answer
Ethereum staking paid about 2.63% gross in the third quarter of 2026, and the large majority of that comes from new issuance rather than fees. Reporting the gross figure as income overstates the return, because part of it is dilution of the holder base, and fees take it lower again.

## Summary
Most of the reward is new issuance. Reporting gross as income overstates a return that is partly dilution.

## Key takeaways
- Report net of commission.
- Record the value at receipt.
- Separate issuance from fee income where you can.

## FAQ
Q: Is staking yield the same as a dividend?
A: No. A dividend is paid from earnings; staking rewards are mostly new units, which dilutes the supply you already hold.
Q: Why does cost basis matter?
A: Because the value you record when you receive a reward becomes the cost basis for the capital gain when you later sell it.