Staking
Also known as: proof-of-stake staking, staking rewards
Locking crypto to help secure a proof-of-stake network in exchange for rewards, which are generally taxed as income on receipt.
Definition
Staking is committing crypto to a proof-of-stake network (directly, via a validator, or through a pool) to support its operation and earn rewards. The rewards are generally revenue income at their rand value when received or when you gain control of them, and that value becomes their base cost. Selling staked rewards later is a separate disposal with its own gain or loss.
Example
You stake ETH and receive rewards worth R500 over a month. That R500 is income on receipt; selling those reward tokens later is a separate disposal.
Jurisdiction notes
- South Africa: Staking rewards are generally revenue income at rand value on receipt; later sale is a separate CGT event.