Commission comes before net rewards

A validator commission is usually deducted from gross staking rewards. Token inflation or a validator's advertised performance is not the user's net return.

Formula
Net APR = Gross APR × (1 − Commission %)

Compounding changes APY

APY depends on how often net rewards are compounded. More frequent compounding increases APY, but not the underlying gross APR.

Formula
Net APY = (1 + (Net APR ÷ Compounds per Year)) ^ Compounds per Year − 1

Nominal rewards omit other outcomes

Token price, slashing, downtime, MEV, tax, unbonding and provider risk remain outside a nominal staking return calculation.