Staking
What is Staking?
Staking is a way to earn interest on cryptocurrency. Users agree to stake their tokens for a period of time and earn rewards in relation to the amount of tokens they stake.
Staking BURP
When you stake BURP in the Town Hall it is locked for a time period chosen by you (stake length). You earn BURP and raffle tickets for the period that your stake is locked. After your stake unlocks, you'll continue to earn BURP but you'll stop earning raffle tickets. You can either withdraw your stake with your rewards, or re-stake to compound your rewards and continue earning BURP and raffle tickets.
Staking Rewards
There are two types of rewards which you can earn by staking BURP:
Yield (more BURP)
Raffle tickets
Yield
When you stake BURP it gets added to a pool with all the other people who are staking. The amount of BURP you earn (yield) depends on the percent of the pool you own. For example, if the pool size (total amount of BURP being staked) is 100 BURP and your stake is 1 BURP then you own 1% of the pool and get 1% of the rewards each time new BURP is minted (i.e. per block). We track who owns the pool by using "shares". By default, 1 BURP = 1 share, but it's possible to increase the ratio by using Reward Multipliers.
Raffle Tickets
For more information on the raffle tickets, view the Raffle page.
Reward Multipliers
When you stake for the minimum time period (1 month) and without including an NFT, your reward multiplier is 1 which means for every 1 BURP you stake, you have 1 "share" in the staking pool. However, if you lock your stake for 3 months your reward multiplier increases to 1.3, so for every 1 BURP you stake, you get 1.3 shares. This increases your percentage ownership of the staking pool, which means you earn more of the BURP rewards as they are minted.
There are two ways to increase your reward multiplier:
Staking for longer than 1 month
NFT Staking
NFT Staking
NFTs which have been won in the raffle (or purchased in markets such as OpenSea) can be staked to increase the rewards you earn thanks to reward multipliers. Each NFT contains a reward multiplier between 1.3x and 4x which when staked increases your ownership of the staking pool. Once your stake has ended, you can withdraw your BURP along with your NFT and reuse it as many times as you want.
Calculating Reward Multipliers
Raffle #001 Prizes
NFTs won in raffle #001 cannot be used as reward multipliers on Polygon and should not be bridged over from Ethereum for this purpose. We have airdropped replacement "Staking Reward Multiplier" NFTs on Polygon to all winners/holders of the raffle #001 prizes.
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