Ethereum rewards come from two distinct layers of the protocol, and they respond to mainly different forces. In 2025, that dynamic has become more pronounced: Rewards overall have been compressing as staking participation grows, while execution layer rewards have shown wider swings driven by shifting onchain conditions.
Two Layers: Two Reward Profiles
Ethereum runs on a two-layer architecture. The Consensus Layer (CL) handles agreement on the state of the chain. The Execution Layer (EL) handles the actual processing of transactions and state transition. Both generate rewards for validators, but the mechanics are very different.
Think of it this way: CL rewards are a salary. They show up reliably each period, set by your employer (the protocol). EL rewards are a commission. They depend on deal flow, timing, and market conditions, and they can swing meaningfully week to week.
Consensus Layer Rewards: The Predictable Part
CL rewards are issued directly by the Ethereum protocol. Validators earn them by performing their core duties: attesting, occasionally proposing blocks, and participating in sync committees. A few things to know about CL rewards:
- Accrued every epoch (roughly every 6.4 minutes) for active validators
- Set algorithmically based on the total amount of ETH staked, with the amount of issuance increasing in the amount of ETH staked but at a decreasing rate, i.e., the more stake, the lower the per ETH rewards
- Accrue to your validator balance and periodically sent to your consensus withdrawal address set at deposit
- Relatively stable and forecastable over rolling periods, with some volatility due to overall network health and performance
CL rewards typically represent the majority of total validator rewards, currently ~93%. They are your baseline rewards. Learn more about consensus layer rewards details here.
Execution Layer Rewards: The Variable Part
EL rewards aren’t newly issued ETH, they’re existing ETH paid by users to have their transactions included in a block. When someone wants their transaction processed quickly, they attach a priority fee to incentivize the block proposer. When sophisticated market participants (arbitrageurs, liquidators, searchers) compete to have their transactions ordered favorably, they pay for that positioning too. This is also known as MEV: maximal extractable value.
Validators capture EL rewards only when they propose a block, which happens roughly once every 6 to 7 months for a validator with 32 ETH and the current amount of ETH staked (~38,513,000). Key characteristics:
- Highly variable, driven by network activity, DeFi volumes, liquidation events
- Influenced by MEV-Boost / commit-boost: validators that run one of these sidecars outsource block building to specialized builders who compete to extract maximum value, typically capturing more EL rewards than building locally, i.e., through the execution client and public mempool
- Paid to your fee recipient address, which is separate from your withdrawal address and must be configured correctly with your provider
EL rewards typically represent a minority of total validator rewards, currently ~7%, but this share can spike during high-activity periods, including major protocol upgrades, DeFi liquidation cascades, or periods of heavy onchain activity. Learn more about execution layer rewards details here.
Side-by-side Comparison:
| Consensus Layer (CL) | Execution Layer (EL) | |
| Source | Protocol-issued ETH | Priority fees + MEV |
| Predictability | High | Low, varies with network conditions |
| Typical share | 90-93% | 7-10% |
| Withdrawal address | Consensus withdrawal address | Fee recipient address |
| Timing | Every epoch (~6.4 min) | Per block proposed (~every 6 to 7 months for a validator with 32 ETH) |
| Figment’s role | High operational performance while limiting significant risks, like slashing | Optimizing EL rewards through prudent relay selection, timing games, while maintaining compliance |
How the Split is Shifting in 2026
CL rewards have faced sustained compression throughout 2025. As Ethereum’s staking participation rate has climbed past 30% of total ETH supply, per-validator issuance has been diluted accordingly. The protocol is designed this way: a downward sloping CL reward curve to find the “right” level of staking participation. EL rewards, while also impacted by the overall compression, have been more volatile.
EL rewards are driven by what’s actually happening onchain: gas prices, DeFi protocol activity, DEX volumes, and liquidation cascades all influence the demand for blockspace and, therefore, the EL rewards received by validators. When onchain activity spikes—during a major token launch, a market dislocation, or a DeFi liquidation event—EL rewards can spike sharply. When activity quiets, they compress. Validators and their operators can influence EL capture through relay selection, but the underlying variability is structural.
What This Means for Institutional Stakers
Stakers should ensure to evaluate performance on longer time horizons. Week-over-week reward variance is a reality of the protocol, not a sign of underperformance. Trailing 30- or 90-day windows give a far more accurate picture of validator performance than any single week.
Expect EL reward spikes around major network and macro events. Periods of elevated onchain and DeFi activity will move EL rewards in both directions. CL rewards will be largely unaffected by network activity levels, though changes to the active validator set will shift the CL rate over time, as will a degradation in network health.
It is important to factor in CL compression when projecting long-term rewards. The CL baseline is likely to continue in a slight decline as staking participation grows.
How Figment Approaches This
Figment’s infrastructure is built to optimize both layers. Figment pioneered the concept of “Safety Over Liveness” with respect to operating validator infrastructure, which, among other things, minimizes the risk of being slashed.
On the EL side, we run MEV-Boost with a diversified relay configuration that includes only OFAC-compliant options, so validators capture competitive EL rewards without compliance exposure.
We also provide reward reporting that breaks out CL and EL components separately. That means when your investment committee asks why rewards moved in a given week, you have a clear, data-backed answer ready. Our quarterly Ethereum Validator Reports publish this data publicly every quarter.
The Bottom Line
Ethereum staking rewards aren’t a single number – they’re the sum of two distinct systems with different risk profiles, timing characteristics, and drivers. The CL is your reliable baseline. The EL is where market conditions show up. Understanding both is how you evaluate staking performance accurately, set realistic expectations, and hold your provider accountable.
Questions about your current CL/EL reward breakdown? Reach out to the Figment team.
