> For the complete documentation index, see [llms.txt](https://docs.gton.capital/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.gton.capital/history-and-legacy/legacy-articles/staking.md).

# 🪙Staking

You can stake GTON in the GTON Capital app here: **📺** <https://cli.gton.capital/> \
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Tokens are distributed according to the parameters previously voted upon by the community: GTON staking with **22.32% fixed APR** with daily reward harvesting.&#x20;

*Example*: Every 100 staked GTON will generate \~2 GTON for the staker every month, with reward distribution happening each block, i.e. \~1 per second.

### **How to harvest rewards?**&#x20;

Once you add GTON to staking, sGTON is being minted that represents your GTON harvest balance. \
\- You can withdraw GTON from staking or increase the staking balance at any time. \
\- You can withdraw your rewards in sGTON as GTON by calling harvest command once per day. When you harvest, sGTON converts into GTON automatically. \
\- You can also reinvest your harvested GTON by sending it to staking in order to generate more rewards, so your sGTON balance will be increased.

### Why is Staking needed?

* To let holders keep and accumulate GTON over time: accumulation as the basic use case.
* Tokens being put in staking will reduce the circulating supply, thus making GTON a deflationary currency.
* At a later stage, staking will be used for governance and block mining consensus in GCNet.
* Staking is also a tool for designing flexible and scalable governance models and incentivization systems such as delegated governance.
* Staking will be used in the upcoming "growth hacking" strategies such as referral or ambassador programs.
* Staking is a sustainable revenue model for system contributors.

### How to find a sustainable APY?

* First of all, the parameters are not hard-coded and can be redefined by the DAO at any time based on the ongoing market dynamics, product use cases, or any other consideration.
* GC is, first and foremost, an ecosystem of products, with a goal of eventually transforming into GCNet (L1). If we apply statistics, the APY must be comparable to the staking value of the DeFi tokens and L1 staking parameters:
  * Based on <https://www.stakingrewards.com/> data, the average of CAKE (60% APY), FTM (10%), BNB (19%), SOL (7%) yields 25% APY for GTON.
* 25% APY equals to 22.23% APR according to <https://www.aprtoapy.com/>
* With 25% APY, a GTON holder who staked 1000 GTONs will receive 250 GTONs by the end of a year.

### How much should we allocate for Staking rewards?

* According to the 🧬PW v1.x DAO vote, we agreed to have \~25% circulating supply at the end of the period (20 epochs). Therefore, the circulating supply will be 0.25·21mln = 5.25mln GTONs. 25% of this amount can be released in the form of staking rewards, which gives us 1.3 mln GTONs (\~6% of TS) allocated for Staking (max allocation, most likely will be less).

### Will APY be fixed, meaning no dilution with new staking deposits coming?

* Yes, APY will be fixed until the next ⚜️GC-🏛DAO vote (ideally in 20 epochs).

### What is sGTON?

* sGTON is the staked GTON - a transferable token for voting/transfer purposes.

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