In Crypto, How Does a Staking Reward Function as a Negative Cost of Carry?

A staking reward functions as a negative cost of carry because it is an income generated by holding the underlying cryptocurrency asset. This income directly reduces the net cost of holding the asset until the futures expiration.

For an arbitrageur executing a cash-and-carry trade (long spot, short futures), the staking reward acts as a dividend, lowering the total cost of ownership and making the arbitrage trade more profitable.