A nominal return measures how many more units of a currency an investment produces. An inflation-adjusted return asks how purchasing power changed. The SEC's investor glossary discusses real return with taxes and inflation in view, while the Bureau of Labor Statistics explains what its consumer price index measures. A token's increased quantity, its dollar return, and an inflation-adjusted dollar return are therefore three different measurements, not competing labels for one number.

If a hypothetical investment gains eight percent in dollars while the relevant price index rises five percent, its inflation-adjusted gain before taxes is approximately 2.86 percent: 1.08 divided by 1.05, minus one. Simply subtracting gives a useful approximation for small rates, but the ratio is the exact compounding calculation. If rewards are paid in a token whose dollar price falls, a positive token-denominated yield can coexist with a negative nominal dollar return.

Crypto discussions sometimes use real yield to mean revenue-derived distributions rather than token emissions. That phrase is not automatically an inflation adjustment. Always specify the asset unit, currency, period, reinvestment assumption, fees, and treatment of taxes. A national price index also represents a defined basket rather than every person's spending pattern. Comparing two yields is meaningful only after these conventions are aligned; a large advertised APY alone does not establish an increase in purchasing power.