# Rewards

### **What is the "Annual Staking Rewards" displayed on the Stader dApp?**

The "Annual Staking Rewards" displayed on the [Stader dApp](https://www.staderlabs.com/bnb/stake/) is the current annualized rate of rewards available for staking BNB with Stader, after adjusting for Stader's commission (10%). This rate is subject to variance based on the Binance Chain and can fluctuate slightly from epoch to epoch.

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### Important Note

Please note that the Annual Staking Rewards displayed on the UI is a dynamic value and does not guarantee the same rate of return for the entire year. It is only a representation of the rewards added to the staking pool and the annualized rate based on the exchange rate difference.
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### **How do users earn rewards?**[​](https://www.staderlabs.com/docs-v1/Ethereum/ETHx%20Staking/faqs#2-how-do-i-earn-rewards-with-ethx) <a href="#id-2-how-do-i-earn-rewards-with-ethx" id="id-2-how-do-i-earn-rewards-with-ethx"></a>

BNBx allows you to earn staking rewards on your BNB holdings. Here's an example to illustrate the process

Let's say a user stakes 100 BNB and receives 100 BNBx, initially at a 1:1 exchange rate. The staking APR is 5%. Over the course of a year, the value of the user's BNBx holdings increases as the exchange rate grows due to the 5% APR staking rewards. By the end of the year, the user's 100 BNB has grown to 105 BNB. This demonstrates how BNBx enables stakers to continuously earn rewards, effectively growing their BNB holdings over time.

### **How do validators earn rewards?**[​](https://www.staderlabs.com/docs-v1/Ethereum/ETHx%20Staking/faqs#3-how-do-validators-earn-rewards) <a href="#id-3-how-do-validators-earn-rewards" id="id-3-how-do-validators-earn-rewards"></a>

Validators earn rewards by participating in the Binance Chain consensus. They propose and attest to blocks, helping secure the network, and earn BNB as rewards for their effort.

### **What is the BNBx exchange rate, and how does it change?**

The exchange rate reflects the total value of the Stader staking pool for BNB, relative to the BNBx tokens in circulation.  The exchange rate is calculated as:\
**Exchange Rate = (Total BNB in the Stader staking pool) / (Total BNBx in circulation)**\
At the time of launch, the BNBx exchange rate was initialized at 1. Over time, as staking rewards are added to the pool, the BNBx-to-BNB exchange rate gradually increases. Therefore, the exchange rate evolves as more rewards are added, directly impacting the value of each BNBx token in terms of BNB.

Let's consider a scenario to illustrate this concept:&#x20;

* Suppose, at the time of staking, there are 1000 BNB in the Stake Pool and 1000 BNBx in circulation, setting the initial exchange rate at 1 (1000 BNB / 1000 BNBx = 1).
* Now, after some time, network rewards result in an additional 100 BNB being added to the Stake Pool. The Stake Pool now holds 1100 BNB, while the circulating BNBx remains at 1000.
* We calculate the new exchange rate as follows: Exchange rate (after rewards) = Exchange rate (before rewards) + (Rewards Added / BNBx in Circulation) = 1 + (100 BNB / 1000 BNBx) = 1 + 0.1 = 1.1
* Thus, the new BNB-to-BNB exchange rate becomes 1.1, indicating that each BNBx token now represents 1.1 BNB. Therefore, even if you initially staked 1 BNB (and received 1 BNBx in return), when you decide to unstake, your 1 BNBx would be exchanged for 1.1 BNB, accounting for the rewards added to the Stake Pool.

### **When are staking rewards accumulated and added to the pool?**

Stader smart contracts accumulate the rewards earned natively from staked BNB and stake them back for auto-compounding. This process increases the BNBx exchange rate.

### **How can I calculate earnings on my staked BNB with Stader?**

To calculate your earnings, multiply your BNBx holdings by the exchange rate to find the current worth in BNB. Then, subtract the original amount of BNB you invested.
