Staking

What is Staking

Staking is the primary value accrual strategy of Cleopatra-DAO. Stakers stake their CAT tokens on the Cleopatra-DAO site to earn rebase rewards. The rebase rewards come from the proceed from bond sales, and can vary based on the number of CAT 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 CAT translates into a constantly falling cost basis converging on zero. This means even if the market price of CAT drops below your initial purchase price, given a long enough staking period, the increase in your staked CAT balance should eventually outpace the fall in price.