> For the complete documentation index, see [llms.txt](https://meta-dao.gitbook.io/meta-dao-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://meta-dao.gitbook.io/meta-dao-docs/functions-of-meta-protocol/staking.md).

# Staking

Those who Stake $META are looking for long term rewards for participating in Meta DAO.   When you stake a percentage of rebase rewards are distributed to your balance in the Meta DAO dashboard on a periodic basis. 

### What is Staking

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

**When you stake, you lock META and receive an equal amount of sMETA.** Your sMETA balance rebases up automatically at the end of every epoch or rebase period. sMETA is transferable and therefore composable with other DeFi protocols.

**When you unstake, you burn sMETA and receive an equal amount of META.** Unstaking means the user will forfeit the upcoming rebase reward. Note that the forfeited reward is only applicable to the unstaked amount; the remaining staked META (if any) will continue to receive rebase rewards.


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