How Do Staking Rewards in a Proof-of-Stake (PoS) Crypto Asset Affect Its Futures Cost of Carry?

Staking rewards are considered an income component of the cost of carry, similar to a dividend in traditional finance. Since the cost of carry is (Financing Cost – Income), the staking rewards reduce the overall cost of carry.

This lower cost of carry results in a lower theoretical futures price, which can narrow the contango or even push the futures contract into backwardation.