Restaking

Restaking commits already-staked tokens (or their liquid staking receipts) to secure additional protocols for extra rewards, layering income streams and unsettled tax questions on top of each other.

How it works

Each reward stream is income when received. Whether the deposit into a restaking protocol is itself a taxable exchange depends on what you receive back, and the IRS has not addressed it.

Why it matters

A consistent, documented position is required, and the reward tokens are often illiquid at receipt, creating tax on value you cannot yet sell. Liquid staking.

Guides that cover restaking

Where this comes up in our work

Crypto tax attorneys

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Definitions are general information, not legal advice, and may not reflect the most recent changes in law.