Staking explained
Last updated
Last updated
Staking is the primary value accrual strategy of LiDAO. Stakers stake their Token on LiDAO to earn rebase rewards. The rebase rewards come from the proceeds from bond sales, and can vary based on the number of LiDAO staked in the protocol and the reward rate set by monetary policy.
Staking is a passive, long-term strategy. The increase in your stake of LiDAO translates into a constantly falling cost basis converging on zero. This means even if the market price of LiDAO drops below your initial purchase price, given a long enough staking period, the increase in your staked LiDAO balance should eventually outpace the fall in price.
When you stake, you lock LiDAO. Your LiDAO balance rebases up automatically at the end of every interlude.
When you unstake, your tokens go into vesting. You can claim some of the rewards (in LiDAO) as they vest, and at the end of the vesting period, the full amount will be claimable. Note that the forfeited reward is only applicable to the unstaked amount; the remaining staked LiDAO tokens (if any) will continue to receive rebase rewards.
