🛠️Staking

Staking in Suitzerland: A Foundation for Stability and Growth Staking is central to Suitzerland, promoting long-term commitment and stability within the protocol. By applying game theory principles, Suitzerland ensures that staking aligns with participants' best interests, making it the most rewarding choice for users.

What is Staking? Staking serves as the primary mechanism for value growth in Suitzerland. Participants stake their $STZ tokens on the Suitzerland dApp to earn rebase rewards. This is a passive, long-term strategy where the increase in your staked $STZ reduces the cost basis of your holdings over time, potentially approaching zero. This means that even if the market price of $STZ falls below your purchase price, a sufficiently long staking period can allow your growing $STZ balance to offset any price declines.

Benefits of Staking The key advantage for stakers is supply growth. Suitzerland mints new $STZ tokens from its treasury, with a significant portion distributed to stakers. This creates a compounding effect, where the growth in token balance can outweigh price drops caused by inflation, provided the balance grows faster than the price decreases.

Dynamic Staking Mechanism Suitzerland offers a highly flexible staking experience, allowing users to stake, claim rewards, or compound their $STZ at any time. ● Claiming Rewards: Stakers who claim rewards receive 100% of their accrued balance. To continue earning, they must relock their stake for at least one epoch.

● Compounding Rewards: Users opting to compound their rewards not only receive the full amount but also earn an additional streak bonus, boosting their earnings further.

● Fees: Staking is free of charge, while unstaking incurs a 10% fee to discourage short-term withdrawals.

By prioritizing flexibility and rewarding commitment, Suitzerland’s staking system empowers participants to maximize their growth and benefit from the protocol’s long-term sustainability.