Plenty of projects advertise a yield without saying where the money comes from. If the answer is "new tokens", the yield is being paid by everyone holding the old ones. Here is how the sums work here.
There are only two sources. Either the protocol prints new supply and hands it to stakers, or it collects fees from real activity and shares those out. The first dilutes every holder to pay a few; the second only pays what the network actually earned.
YACoin staking is designed around the second: rewards are drawn from transaction fees, swap fees, and bridge fees, then distributed pro-rata by the amount staked and how long it is locked.
Fee income moves with how busy the chain is, so a fee-funded yield rises and falls with real demand. On Danny Chain that activity is public:
Network utilisation under one percent is worth reading honestly: there is a great deal of headroom, and a fee-funded yield at this stage is small because the fee pool is small. A published rate that ignored that would be a printed rate, not an earned one.
Slashing applies to validators that misbehave, not to ordinary stakers. The risks that matter for a normal holder are simpler: opportunity cost during the lock, a yield that can fall to near zero if activity dries up, and smart-contract risk in the staking contract itself — which is why the audit is published in full rather than summarised as a badge.
