Ethereum staking in 2026: how it works and what the risks are
Since the move to proof-of-stake, staking ETH has been a popular way to earn passive returns. We calmly explain how it works, what options there are and what to watch out for.
From mining to staking
In September 2022, Ethereum switched from proof-of-work to proof-of-stake. Instead of computing power, validators with staked ETH now secure the network. Anyone who takes part receives a reward in new ETH plus a share of the transaction fees.
The three main ways to stake
1. Solo staking
You run your own validator with 32 ETH. This gives the highest return and the most control, but requires technical knowledge, a stable internet connection and discipline around updates.
2. Staking via an exchange or pool
Almost every large exchange offers staking, often from very small amounts. Easy to use, but you hand over management and pay a commission.
3. Liquid staking
Protocols such as Lido or Rocket Pool give you a tradable token (for example stETH or rETH) that represents your staked ETH. This keeps your capital usable in DeFi, but you add smart-contract risk.
What is the return?
The net staking return has fluctuated for years between roughly 2.5% and 5% per year, depending on how much ETH is staked and how busy the network is. Periods of heavy DeFi activity or NFT demand push it up temporarily.
The risks that are often forgotten
- Slashing: a validator that misbehaves loses part of its stake. With solo staking this is your responsibility; with pools, everyone shares the burden.
- Smart contract risk with liquid staking. A bug in the protocol can affect a large part of your stake.
- Concentration risk. If one liquid staking provider becomes too large, it creates a risk for the entire network.
- Taxes. In the Netherlands, staked ETH simply counts in box 3, and rewards received can be separately relevant for tax purposes.
How do you choose?
Use this short step-by-step approach:
- Determine whether you will need your ETH in the short term. If so, choose a liquid variant.
- Assess whether you are technically comfortable with running your own node.
- Consider spreading across multiple providers instead of putting everything with one party.
Closing
Staking makes Ethereum attractive as a yield-bearing asset, but the return is never free. Understand the mechanism before you step in, and treat staking as a long-term choice, not a quick trick.