> For the complete documentation index, see [llms.txt](https://ultimateponzi.gitbook.io/the-ultimate-ponzi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ultimateponzi.gitbook.io/the-ultimate-ponzi/ohm-inspired-mechanics/staking-degen-level-0.md).

# Staking - Degen Level: 0

**Staking is the primary value accrual strategy of TUP.** Stakers stake their **PONZI** tokens in the ponzi to earn harvest rewards. The harvest rewards come from the proceed from bond sales and can vary based on the number of **PONZI** tokens 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 **PONZI** translates into a constantly falling cost basis converging on zero. This means even if the market price of PONZI drops below your initial purchase price, given a long enough staking period, the increase in your staked PONZI balance should eventually outpace the fall in price.

**When you stake, you lock PONZI and receive an equal amount of sPONZI.** Your sPONZI balance harvests up automatically at the end of every epoch. sPONZI is transferable and therefore composable with other DeFi protocols.

**When you unstake, you burn sPONZI and receive an equal amount of** PONZI**.** Unstaking means the user will forfeit the upcoming harvest reward. Note that the forfeited reward is only applicable to the unstaked amount; the remaining staked PONZI (if any) will continue to receive harvest rewards.