The promise of high cashback rates is a primary driver for crypto card adoption. However, beyond the marketing headlines, rewards programs are often governed by complex tier structures and staking requirements.
The Staking Requirement
Most high-tier rewards are not "flat rate." To unlock the highest percentages (Source: Issuer Documentation), users are typically required to "stake" or lock up a specific amount of the provider's native token.
Example Tier Structure (Analytical View):
- Base Tier: 0% - 1% Cashback (No staking required).
- Mid Tier: 2% - 3% Cashback (Requires moderate token lock-up).
- Premium Tier: 5% - 8% Cashback (Requires significant capital lock-up).
Monthly Reward Caps
It is common for issuers to implement "Monthly Reward Caps." This means even if you have an 8% cashback rate, you may only be able to earn a maximum of $50 or $100 per month in rewards. Always verify the "Cap" in the Card Comparison Table.
Token Volatility and Real Value
Since cashback is often paid in the issuer's native crypto token, the "real value" of your rewards is subject to market volatility. A 5% reward earned today could be worth 3% or 10% next month depending on the token's price performance.