How does my validator earn ETH?

Validators that participate in securing the Beacon Chain and execute "duties" get rewarded for this by new issuance of ETH. In addition, validators receive priority fees paid by users, and optionally MEV. Validators are rewarded for executing those duties by new ETH issuance to the "validator balance". The current APY can be seen on the official launchpad ↗.

Type	Layer	Frequency	Amount
Attestation	Consensus	Once per Epoch (every 6.4 minutes on average)	0.000014 ETH*
Block Proposal	Consensus	Every 2 months on average	0.02403 ETH*
Sync Committee	Consensus	Every 2 years on average**	0.11008 ETH*
Slashing Reward	Consensus	Very rarely included in Block Proposals	Up to 0.0625 ETH
Priority Fees	Execution	Included in every Block Proposal containing transactions	Typically 0.01 to 0.1 ETH; very rarely 1+ ETH
MEV Rewards	Execution	Also included in Block Proposals when using MEV-boost	Typically 0.01 to 0.1 ETH; very rarely 1+ ETH

*Varies based on the total number of validators in the network. Estimate shown approximated for 435,000 active validators.

**These are subject to randomness; there can be "dry spells" multiple times longer than the average without being given one.

Rewards provided on the Consensus are not currently liquid. They are locked on the chain until withdrawals have been implemented. Rewards provided on the Execution, however, are liquid and can be accessed instantly.

Source ↗

Validator penalties

If the validator is offline and not executing its duties, it will be penalized at a rate slightly lower than the rewards for the same period of time.

Validators are penalized for small amounts of ETH if they are offline and fail to perform their assigned duties. This is called leaking. If a validator violates one of the core rules of the Beacon chain and appears to be attacking the network, it may get slashed. Slashing is a forceful exit of your validator without your permission, accompanied by a relatively large fine that removes some of your validator's ETH balance.

Realistically, the only condition that can cause a slashing is if you run your validator's keys on two nodes at the same time (such as a failover / redundancy setup, where your backup node accidentally turns on while your main node is still running). Don't let this happen, and you won't get slashed. Slashing cannot occur from being offline for maintenance.

Below is a table that shows the penalties that can happen to a validator:

Type	Layer	Amount
Missed Attestation	Consensus	-0.000011 ETH* per attestation (-9/10 the value of a normal attestation reward)
Missed Block Proposal	Consensus	0
Missed Sync Committee	Consensus	-0.00047 ETH* per epoch (-0.1 ETH total if offline for the whole sync committee)
Slashing	Consensus	At least 1/32 of your balance, up to your entire balance in extreme circumstances

*Varies based on the total number of validators in the network. Estimate shown approximated for 435,000 active validators.

As a rule of thumb, if you're offline for X hours (and you aren't in a sync committee), then you'll make all of your leaked ETH back after X hours once you're back online and attesting.

Source ↗