Two staking offers land in front of you. One says 12% APR, the other says 12% APY. They look identical, so surely they pay the same?
Not quite. That one letter changes how your reward is calculated, and over time the difference adds up.
This guide clears that up with plain maths, then looks at what the CANDY roadmap says about its planned staking programme, and what you should keep in mind before locking anything away.
Key takeaways
APR (annual percentage rate) is the plain yearly rate. If you stake 1,000 tokens at 10% APR and your rewards are not added back to your stake, you earn 100 tokens over a year.
APY (annual percentage yield) includes compounding. Compounding means your rewards are added to your balance, so the next reward is calculated on a slightly bigger amount. You earn rewards on your rewards.
The more often rewards compound, the bigger the gap between APR and APY becomes.
Let's use generic numbers, not real CANDY figures.
Say you stake 1,000 tokens at a 10% base rate.
The formula, if you like seeing it written down, is:
APY = (1 + APR ÷ n)^n − 1, where n is the number of compounding periods per year.
Notice that the gain from compounding more often gets smaller each step. Going from yearly to monthly matters more than going from monthly to daily.
One practical point: compounding only works if rewards are actually added back to your stake, either automatically or by you claiming and re-staking them. If you withdraw rewards as they arrive, you are effectively earning the APR.
Many staking programmes offer two broad options.
Flexible staking lets you withdraw whenever you want. The trade-off is usually a lower rate.
Locked staking asks you to commit tokens for a fixed period. Longer locks often carry higher rates, because you are giving up the ability to sell or move your tokens during that time.
| Feature | Flexible pool | Locked pool |
|---|---|---|
| Access to tokens | Withdraw at any time | Fixed until the lock ends |
| Typical rate | Lower | Often higher for longer terms |
| Best suited to | People who may need access | People happy to hold for the term |
| Main risk | Lower reward | Cannot react if prices move |
| Compounding | Depends on the programme | Depends on the programme |
A lock is a real commitment. If the market falls sharply during your lock, you may have to sit through it.
According to the official roadmap, CANDY staking is planned to launch with up to 25% APY. The project says there will be a flexible pool plus locked pools of 30, 90, 180 and 365 days.
The phrase "up to" matters. It usually means the highest rate applies to a specific option, often the longest lock, and other pools may offer less. Exact rates per pool have not been confirmed, and the project notes that rates are not guaranteed and can change.
The roadmap also explains where rewards are designed to come from. Rather than simply minting new tokens, staking is planned to be funded by ecosystem revenue through the buyback model. That links to CANDY's wider flywheel: Use, Earn, Buy Back, Burn. Revenue from products across the ecosystem is designed to fund buybacks of CANDY, which are then burned.
That is a thoughtful design on paper. It also means rewards depend on the ecosystem generating revenue as intended. Launch dates and pool details will be announced on the official channels, so check cryptocandy.io for current information.
Price risk. A 25% yield means little if the token itself falls by more than that. Rewards paid in CANDY are worth whatever CANDY is worth.
Rate changes. Planned rates can be adjusted, especially in a new programme.
Lock risk. Locked tokens cannot be sold until the term ends.
Unlock timing. If you bought in the presale, remember that 10% unlocks at TGE and the remaining 90% is released linearly over 18 months. Only unlocked tokens can be staked.
Fake staking sites. New staking launches attract copycat pages promising unrealistic rates. Only use links from cryptocandy.io and never share your seed phrase.
APY includes compounding and APR does not, so always check which one you are looking at and how often rewards compound. CANDY's roadmap describes promising plans: up to 25% APY, a flexible pool and locks from 30 to 365 days, funded by ecosystem revenue. Treat those as plans, wait for confirmed details, and only stake what you are comfortable holding through ups and downs.
This article is for information only and is not financial advice. Staking rates described here are planned and not guaranteed, token prices can fall, and you could lose money. Always do your own research.
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