> For the complete documentation index, see [llms.txt](https://delnorte-terra-vision.gitbook.io/delnorte-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://delnorte-terra-vision.gitbook.io/delnorte-docs/dtv-tokenomics/staking-and-rewards.md).

# Staking & Rewards

#### **1. Staking Options and Mechanism**

Delnorte offers innovative **staking** options that allow **token holders** to earn rewards by **staking their tokens** within the platform. These staking options come with varying **lockup periods** and **reward rates**, providing flexibility and encouraging long-term commitment.

**Key Staking Features:**

* **DeFi Integration with NFTs**: Delnorte’s staking mechanism incorporates **NFTs (Non-Fungible Tokens)** that represent **real-world assets** recognized by the government. This creates a **unique opportunity** for token holders to stake their tokens in association with tangible, government-backed assets, blending **crypto staking** with **asset-backed investments**.
* **Crowdfunding Participation**: Token holders can use their staked tokens and NFTs to participate in **crowdfunding projects** facilitated by **Delnorte** or third-party platforms. This enables token holders to invest in **real-world assets**while supporting the development of digital innovation within the ecosystem.
* **Liquidity for Tokenized Assets**: Staked tokens can provide liquidity for **tokenized projects** in the ecosystem, allowing users to earn **dividend yields** from **verified businesses and assets**. This allows for **passive income** while supporting the growth of the platform.
* **NFT Staking**: In addition to staking tokens, holders of **asset-backed NFTs** have the ability to **stake their NFTs**. This provides access to **unlock liquidity** and yields, akin to a **reverse mortgage** in traditional finance. By staking NFTs, token holders can maximize returns and participate in the growth of both **physical** and **digital** assets.

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#### **2. Rewards Source**

The **staking rewards** will be sourced from a **portion of transaction fees** collected on the platform. This creates an ecosystem where users are incentivized to **hold tokens** and participate in securing the platform through staking. This approach also aligns token holder interests with the long-term success and growth of Delnorte.

**Benefits of Staking Rewards:**

* **Incentive to Hold Tokens**: The rewards encourage users to retain their tokens, which contributes to platform stability and liquidity.
* **Platform Security**: By staking tokens, users contribute to the security and integrity of the Delnorte ecosystem, benefiting from the **increased value and usage** of the platform.
* **Higher Reward Potential**: As users stake more tokens and NFTs, they can unlock higher levels of rewards and benefits, creating a **compounding effect** on their investment.

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#### **3. Dividend Payout Currency**

Dividends earned through staking can be **paid out in ETH (Ethereum)** or **RST (Delnorte’s Reward System Token)**, with distinct incentives for choosing **RST** as the payout currency.

**Dividend Payment Details:**

* **ETH Dividends**: Payments made in **ETH** are subject to the **ETH network fee**, which is a small transaction fee for using the Ethereum network.
* **RST Dividends**: If dividends are paid in **RST**, there is a **0.1% fee** (waived), offering a **lower-cost** and **more efficient** option for token holders. This creates an incentive for users to opt for **RST** payouts, helping to boost the liquidity and utility of the RST token within the Delnorte ecosystem.

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#### **4. Summary of Staking and Rewards Mechanisms**

* **Staking Options**: Multiple staking options with varying lockup periods and reward rates, designed to offer flexibility for token holders.
* **NFT and Staking Integration**: The combination of **NFTs** representing **real-world assets** and **crypto staking**facilitates **asset-backed investments**, providing new opportunities for users to participate in crowdfunding and liquidity provision.
* **Rewards Source**: Staking rewards are funded from transaction fees, encouraging token holders to secure the platform and participate in its growth.
* **Dividend Payout Options**: Dividends can be paid in **ETH** or **RST**, with a **small fee** for ETH payouts and a **waived fee** for RST payouts, incentivizing users to use RST for dividend distribution.

This unique blend of **staking** and **NFT integration** positions Delnorte as a leader in the **DeFi** and **asset-backed investment** space, offering users **greater control**, **inclusivity**, and **returns** on their investments, while fostering the growth of the **Delnorte ecosystem**.