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.