How Staking Works

Staking is simple: you lock USDT for a chosen period and earn Warrant NFT rewards. Longer locks earn more rewards.

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The Process

1. Choose lock duration (3-24 months)
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2. Deposit USDT into the pool
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3. Receive Warrant NFTs as rewards
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4. At lock expiry: Withdraw your USDT

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Lock Duration Tiers

You choose how long to commit your USDT. Longer locks earn higher reward multipliers:

Lock Period	Multiplier	Rewards vs. Base
3 months	1.0x	Base rate
6 months	1.2x	+20%
12 months	1.5x	+50%
18 months	1.8x	+80%
24 months	2.0x	+100%

The tradeoff: Longer lock = more Warrant rewards, but more time your USDT is at risk.

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Example

Assume base reward rate: 10 Warrants per week per $50,000 staked.

Frank stakes $50,000 USDT for 6 months (1.2x multiplier)

• Weekly rewards: 10 × 1.2 = 12 Warrants/week

• Total over 6 months (~26 weeks): 312 Warrants

Grace stakes $50,000 USDT for 24 months (2.0x multiplier)

• Weekly rewards: 10 × 2.0 = 20 Warrants/week

• Total over 24 months (~104 weeks): 2,080 Warrants

Grace earns ~6.6x more Warrants than Frank — but her USDT is locked 4x longer and exposed to risk for that entire period.

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What Happens During Your Lock?

Event	Impact on You
No shortfalls	Your USDT stays intact; withdraw at lock expiry
Shortfall occurs	Some USDT may be used; you receive $MSTR compensation
Want to exit early?	Not possible — USDT is locked until expiry

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How the Protocol Uses the Pool

The protocol looks at the Insurance Pool when issuing USD bonds:

1. Assess total USDT staked and lock duration distribution

2. Determine appropriate bond size and maturity based on available coverage

3. Reserve pre-minted $MSTR for potential staker compensation

This ensures bond maturities align with available insurance coverage.

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After Your Lock Expires

When your lock period ends:

• Withdraw your USDT (minus any amounts used for shortfalls, if any)

• Keep your Warrant NFTs — they're yours regardless

• Re-stake if you want to earn more rewards