# Staking **What is SYRUP Staking?** {% embed url="" %} Staking rewards represent token distributions to reward stakers for securing the economic activity of the network. The Maple protocol will distribute SYRUP rewards as a combination of scheduled increase in the SYRUP token supply (5% annualized) and SYRUP token buybacks. Token buybacks consist of SYRUP tokens that are redeemed using revenue generated from the protocol’s lending activities. Technically, stSYRUP is a smart contract that represents a token that distributes rewards to its holders. Users that hold SYRUP can stake it in order to receive stSYRUP, and receive their portion of rewards that are distributed in SYRUP tokens. In the first 90 days post token launch November 13th 2024, 5,000,000 SYRUP is being distributed to stakers. The current staking rate is visible on [syrup.fi/stake](https://syrup.fi/stake) SYRUP tokens are distributed linearly throughout the 90-day period, incentivizing token holders to stake as soon as they can and for the duration of the program. ### **Where do Staking Rewards come from?** SYRUP is the governance token for the Maple ecosystem, and all value from institutional loans facilitated through Maple and Syrup accrues to the SYRUP token. By staking, SYRUP holders are able to grow their SYRUP balance as they participate in the growth of the Maple ecosystem. The main source of revenue for the protocol comes from the collection of management, and service fees as a portion of interest on institutional loans. Management fees are the portion of lender interest that is taken by protocol for facilitating loan origination, and service fees are paid by the borrowers as part of their overall cost of borrowing, which includes interest. The fees collected by the treasury can then be used to buyback SYRUP, which can be distributed to all stakers, along with a portion of the token inflation. The inflation schedule for SYRUP token can be found [here](https://community.maple.finance/t/mip-010-syrup-token-launch-and-mpl-syrup-conversion/334). ### **Staking & Unstaking** {% embed url="" %} The staking smart contract is decentralized and non-custodial, meaning no third party takes possession of, actively manages, or controls staked tokens. Further, no party holds the private keys for the staking contract; it is decentralized. When token holders stake their tokens to share in protocol rewards, they are free to un-stake and withdraw their SYRUP tokens at any time. Further, staking is not tied to governance - SYRUP holders, whether staking or not, are able to participate in governance. Stakers retain ownership of their tokens for the duration of the staking period, and all staked SYRUP (stSYRUP) remains idle in the smart contract - it is not deployed for any commercial use. A user’s SYRUP balance can be viewed in the Syrup webapp and can be withdrawn at any time. stSYRUP increases in value over time relative to SYRUP as rewards accumulate. As a result, the amount of stSYRUP tokens a user receives for staking SYRUP decreases over time. When unstaking, users keep all staking rewards earned and can instantly withdraw their SYRUP, with no lock-up period. See more technical details [here](https://syrup.gitbook.io/syrup/syrup-token/staking-smart-contract-details). ### **SYRUP Rewards Distribution** When staked, SYRUP rewards begin to accumulate immediately and are reflected in an increasing balance of SYRUP tokens in the staking dashboard. Future distributions of SYRUP token are subject to voting from SYRUP token holders. The voting process takes place transparently on [Snapshot](https://snapshot.org/#/maple.eth), with proposals submitted to the Maple [governance forum](https://community.maple.finance/) weeks prior. When considering the decision to stake SYRUP, it is important to note that staking does not carry a contractual future return, and future distributions are subject to the vote of the SYRUP token holders. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://syrup.gitbook.io/syrup/syrup-token/staking.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.