Staking

What is Staking?

Staking is the primary value accrual strategy of Nemesis DAO. Stakers stake their NMS tokens on our website to earn rebase rewards. The rebase rewards come from the proceed from minter sales, and can vary based on the number of NMS 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 NMS translates into a constantly falling cost basis converging on zero. This means even if the market price of NMS drops below your initial purchase price, given a long enough staking period, the increase in your staked NMS balance should eventually outpace the fall in price.
When you stake, you lock NMS and receive an equal amount of sNMS. Your sNMS balance rebases up automatically at the end of every epoch. sNMS is transferable and therefore composable with other DeFi protocols.
When you unstake, you burn sNMS and receive an equal amount of NMS tokens. 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 NMS (if any) will continue to receive rebase rewards.