Ethereum Staking Rewards Insurance policy

Institutions stake ETH for a reliable reward rate, but historically, rewards swing with network activity and market sentiment. 

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Blockdaemon is excited to announce our participation in the premiere Ethereum Staking Rewards Insurance policy*, created by IMA Financial Group and Chainproof and benchmarked to CoinFund’s Composite Ether Staking Rate (CESR).  This first-of-its-kind policy provides assurance to Blockdaemon’s institutional customers for a guaranteed ETH rewards rate.  

Why an insurance policy matters

ETH Protocol Reward Rates (PRR) vary with validator uptime, transaction fee levels, Maximum Extractable Value (MEV), and other factors, making annual reward rates hard to forecast. Uncertainty pushes institutional treasuries to hold excess buffer capital or avoid staking altogether. 

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This new insurance policy operates on an annual payout model, meaning Blockdaemon assesses our validators performance and if the staking rewards have fallen below the CESR benchmark, Blockdaemon can claim the difference with our insurance coverage ensuring institutional stakers capture the guaranteed minimum.

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“Blockdaemon is continuously focused on offering our partners and clients cutting-edge solutions for the rapidly evolving blockchain ecosystem. The Ethereum Staking Rewards Insurance policy represents a significant step forward in enhancing financial predictability for ETH staking. This innovative policy will not only offer key protection against staking reward volatility but will also help unlock new avenues and set new standards for institutional growth.” - Konstantin Richter, Founder & CEO of Blockdaemon

Conclusion

By pairing Blockdaemon’s validator infrastructure with an insurance floor set to CESR, institutional stakers gain increasing confidence in delivering reliable, consistent staking reward rates - key to driving further adoption. 

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*Disclaimer, not applicable to all customers.  Contact Blockdaemon to learn more.

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