Members

Staking Tokens

Staking API3 tokens in the staking pool makes you eligible for rewards and governance rights.

The DAO uses an adaptive reward system to incentivize staking. Rewards will increase to incentivize staking when the total staked is below the staking target, and decrease to reduce token emissions when the total staked is above the staking target. To see the current funding status, you can see the percentage of target met.

1. Deposit tokens

Before tokens can be staked you must deposit them in the staking pool. Doing so will remove them from your wallet and place them into the staking pool under the control of its smart contracts. Your Balance reflects the amount of tokens you have deposited and not yet staked. Withdrawable (and unstaked) tokens can be removed from the staking pool at any time and returned to your wallet.

To deposit tokens, click the Deposit button. If this is your first time depositing, you’ll have to authorize the staking pool smart contract first by clicking Approve. Note that deposited tokens are not staked. They will not earn rewards or grant you governance rights.

You can only withdraw tokens that are not staked. The Balance section displays the maximum amount that can be withdrawn under “Withdrawable”. To withdraw tokens, click the Withdraw button. The tokens withdrawn are returned to your wallet.

2. Stake tokens

To stake tokens, click the Stake button. The number of tokens available to stake depends on the number of tokens deposited and are available to withdraw as displayed in the Balance box as under “Withdrawable”.

3. Claim rewards

You will not be able to withdraw your rewards for a year after receiving them. Since rewards get minted every week, you can think of this as a rolling unlock (the rewards you receive this week will get unlocked 1 year later, the rewards you will receive next week will get unlocked 1 year 1 week later, etc.) This 1 year-lock is the secret sauce to good decentralized governance, it essentially aligns the incentives of the stakers/governors with the ones of the DAO/project/token for a whole year. Unstake tokens to claim your unlocked rewards. Note that unstaking will revoke your most recent weekly reward payment, and scheduling tokens to be unstaked stops earning rewards for those tokens.

To protect the DAO from proposal spam, unstaking is subject to a seven day waiting period. To initiate unstaking, click “Initiate Unstake”.

After the unstaking has been initiated, the interface will display the pending amount of tokens that are being unstaked and a countdown timer. Tokens cannot be unstaked until the timer is complete.

Once the seven day timer has run out, there are two ways to complete the process:

1. Unstake & Withdraw: This option will immediately unstake your tokens and deposit them into your wallet.
2. Unstake: This option will unstake your tokens while keeping them deposited in the DAO. From here you can use the Withdraw link to move the tokens to your wallet at any time or stake them again.