Staking

Staking is the primary value accrual strategy of Democracy DAO. Stakers stake their DEMO tokens on our website to earn harvest rewards payed out in DEMO tokens. The harvest rewards come from the proceed from bond sales and can vary based on the number of DEMO 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 DEMO translates into a constantly falling cost basis (as you DEMO token balance increases) gradually growing closer to zero. This means even if the market price of DEMO drops below your initial purchase price, given a long enough staking period, the increase in your staked DEMO balance should eventually outpace the fall in price thus giving the stakers a profit

When you stake your Demo, you lock it up and receive a equal amount of sDemo. Your sDemo balance harvests up automatically at the end of every rebase.For Demo holders the prime way of making gains is through increasing their DEMO balance from staking rather than the increasing the price of DEMO although it can play a important factor in the value of users DEMO holdings

When you unstake, you burn sDemo and receive an equal amount of DEMO. sDemo an DEMO are pegged at a 1:1 ratio. 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 DEMO (if the user leaves any in the staking pool) will continue to receive harvest rewards.