How Staking Works
Staking is a key feature of the Giza ecosystem that allows community members to participate in governance and earn additional Giza tokens as rewards.
Overview
When you stake your Giza tokens, you're essentially locking them in a smart contract for a period of time. In return, you receive:
- Additional Giza tokens as rewards
- Governance power to participate in decision-making
- A direct voting power to contribute on the Giza ecosystem
Mechanism
The Giza staking mechanism uses a well-established reward distribution system that works as follows:
- A dedicated emission of $GIZA is set aside for rewarding stakers
- These rewards are distributed proportionally to all stakers based on their earning power (function of staked amount and stake duration)
- Rewards accumulate continuously and can be claimed at any time
Unstaking Fee
No fee is charged after staking for 1 month or longer. You can withdraw your tokens completely fee-free once you've staked for at least 1 month.
To promote long-term staking and discourage frequent entering and exiting, Giza implements a withdrawal fee mechanism:
- When withdrawing staked tokens before the 1-month mark, a 5% fee is applied initially, that decays linearly to 0% over a 1-month period.