Staking Overview

Staking allows token holders to lock their tokens in exchange for rewards, enhanced voting power, and governance participation. This guide covers the staking system and its benefits.

What is Staking?

Staking is the process of locking tokens in a smart contract to:

Earn Rewards - Receive a share of protocol revenue or inflation
Gain Voting Power - Lock tokens for vote-escrowed governance tokens
Support the Network - Contribute to protocol security and decentralization
Access Benefits - Unlock premium features or reduced fees

How Staking Works

┌─────────────────────────────────────────────────────────────┐
│                    Staking Flow                              │
├─────────────────────────────────────────────────────────────┤
│                                                              │
│   [Deposit Tokens] ──► [Staking Contract] ──► [Receive veTokens]
│                              │                               │
│                              ▼                               │
│                    [Accumulate Rewards]                      │
│                              │                               │
│                              ▼                               │
│              [Claim Rewards] or [Compound]                   │
│                                                              │
└─────────────────────────────────────────────────────────────┘

Staking Mechanics

Deposit - Lock tokens for a chosen duration
Receive veTokens - Get vote-escrowed tokens representing your stake
Earn Rewards - Accumulate rewards over time
Participate - Vote on proposals with your veTokens
Withdraw - Unlock tokens after the lock period ends

Staking Models

Fixed Lock Period

Lock tokens for a predetermined duration with fixed rewards.

Lock Period	APY Boost	Early Exit
30 days	1.0x	10% penalty
90 days	1.5x	15% penalty
180 days	2.0x	20% penalty
365 days	3.0x	25% penalty

Flexible Staking

No lock period with instant withdrawal capability.

Lower rewards than locked staking
Instant liquidity
Good for short-term participants

Vote-Escrow (veToken) Model

Lock tokens to receive voting power that decays over time.

Lock Duration: 4 years maximum
Voting Power: Linear decay to 0 at unlock
Rewards: Proportional to voting power

Example:

Lock 1,000 tokens for 4 years → 1,000 veTokens
After 2 years → 500 veTokens remaining
After 4 years → 0 veTokens (tokens unlocked)

Benefits of Staking

For Token Holders

Passive Income - Earn rewards without active trading
Governance Rights - Vote on protocol decisions
Fee Discounts - Reduced fees on protocol services
Priority Access - Early access to new features

For DAOs

Reduced Circulating Supply - Less sell pressure
Aligned Incentives - Long-term holder commitment
Governance Participation - Active voter base
Treasury Revenue - Staking fees to treasury

Reward Sources

Staking rewards can come from multiple sources:

Protocol Revenue

Sources:
  - Trading fees: 50% to stakers
  - Lending interest: 30% to stakers
  - NFT royalties: 25% to stakers
  - Service fees: Variable

Inflation

Annual Emission: 5% of total supply
Distribution:
  - Stakers: 80%
  - Treasury: 15%
  - Development: 5%

External Incentives

Partner protocols may provide additional rewards:

Liquidity mining programs
Ecosystem grants
Partnership distributions

Staking Dashboard

settings

Setup Staking

Configure staking for your DAO

pie-chart

Distributions

Manage reward distributions

lock

Using Staking

Guide for token holders

Quick Stats Example

┌─────────────────────────────────────────────────────────────┐
│ Staking Overview                                             │
├─────────────────────────────────────────────────────────────┤
│                                                              │
│  Total Staked:     45,000,000 LUX (45% of supply)           │
│  Current APY:      12.5%                                     │
│  Total Stakers:    8,234                                     │
│  Rewards Paid:     2,500,000 LUX                            │
│                                                              │
│  ┌─────────────────────────────────────────────────────┐   │
│  │ Lock Distribution                                    │   │
│  │ ████████████████████░░░░ 30 days: 20%               │   │
│  │ ██████████████░░░░░░░░░░ 90 days: 35%               │   │
│  │ ██████████░░░░░░░░░░░░░░ 180 days: 25%              │   │
│  │ ████████░░░░░░░░░░░░░░░░ 365 days: 20%              │   │
│  └─────────────────────────────────────────────────────┘   │
│                                                              │
└─────────────────────────────────────────────────────────────┘