# Introduction to staking

#### **Purpose and Benefits**

* Staking provides WOW holders with an opportunity to earn passive rewards by actively contributing to the network's security and functioning.
* In the WOW ecosystem, staking directly ties participants to the success of projects funded by the protocol, creating a shared incentive for growth and stability.

#### **Staking Options**

* **Fixed Staking:** Users receive upfront shares that guarantee rewards over a predetermined period while tokens remain locked.
* **Flexi Staking:** Users accumulate shares progressively over time while retaining the ability to unlock their tokens anytime.

#### **Staking Tiers**

* Participants stake into specific tiers that define their access to rewards pools. Staking in a higher tier grants access to all lower tiers, increasing the range of rewards available.
* Rewards are distributed in stable coin based on the shares held, reducing the potential market impact of large-scale selling.

#### **Yield Distribution**

* Yield or rewards are distributed proportionally among staking participants via transparent smart contracts, ensuring fair and accurate distribution.
* The protocol operates within a closed-loop economy where profits are reinvested, distributed as rewards, or used for a buyback-and-burn mechanism to enhance value.

{% content-ref url="/pages/arWQgOixmnCMn1JioxsT" %}
[How to stake WOW](/staking/how-to-stake-wow.md)
{% endcontent-ref %}


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