# 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.