# Timelock Staking

Timelock Staking is a powerful feature that enables users to earn boosted staking rewards and also loyalty tokens by staking their NMSP tokens in time-lockers. This innovative approach not only rewards users for their long-term commitment but also promotes token holding, stabilizing the value of NMSP tokens and encouraging user loyalty.

The minimum requirement to open a locker is 10 NMSP, and users can open unlimited token lockers; however, they can not add more funds to already sealed lockers.&#x20;

After a locker is created, users can not cancel or withdraw their initials until the timer expires.

Upon completing the locker period, users will receive their initial deposits and stake rewards. The rewards will be distributed proportionally to the staked amount and the chosen time-lock option.

By providing various time-lock options, users can choose their preferred staking duration and corresponding APY:

<table><thead><tr><th width="228.33333333333331" align="center"></th><th width="171" align="center"></th><th width="244" align="center"></th><th data-hidden></th></tr></thead><tbody><tr><td align="center"><strong>Period</strong></td><td align="center"><strong>APY</strong></td><td align="center"><strong>Loyalty Multiplier</strong></td><td></td></tr><tr><td align="center">Single Staking</td><td align="center">15-25%</td><td align="center">N/A</td><td></td></tr><tr><td align="center">2-Months Timelock</td><td align="center">30% </td><td align="center">1.0x</td><td></td></tr><tr><td align="center">4-Months Timelock</td><td align="center">40%</td><td align="center">2.5x</td><td></td></tr><tr><td align="center">6-Months Timelock</td><td align="center">55%</td><td align="center">5.0x</td><td></td></tr></tbody></table>

In addition to the boosted staking rewards, users can also earn NMS LP tokens when they stake their NMSP tokens in timelock staking. The amount of NMS LP earned is based on the number of NMSP tokens staked and the chosen locker duration.\
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**2-Month Locker:** For every 10 NMSP locked, users will earn 1.0 NMS LP.

**4-Month Locker:** For every 10 NMSP locked, users will earn 2.5 NMS LP.

**6-Month Locker:** For every 10 NMSP locked, users will earn 5.0 NMS LP.\
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The distribution of NMS LP tokens will be split into two phases to encourage users to remain committed to their chosen locker duration:

* **30% of NMS LP will be received upon opening a locker and**
* **70% after the locker expires and the staking duration is complete.**

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Earning NMS LP tokens through Timelock Staking offers several advantages to users:

**Enhanced Rewards:** The NMS LP tokens act as an additional reward, further incentivizing users to participate in timelock staking and increasing their potential returns. (See: [NMS LP Reward Pool](../../features/nms-lp-reward-pool))

**Encourages Long-Term Commitment:** The phased distribution of NMS LP tokens, with the majority being released after locker expiration, motivates users to remain committed to their chosen locker duration.

**Diversification:** By earning both staking rewards, and NMS LP tokens, users have the opportunity to diversify their portfolios, reducing risk and maximizing potential returns.\


The table below demonstrates the returns generated by a user who secures and compounds an initial deposit of 100 NMSP in various locker options throughout a one-year timeframe.

<table><thead><tr><th width="199" align="center"></th><th width="136.33333333333331"></th><th width="146"></th><th></th></tr></thead><tbody><tr><td align="center"><strong>2-Month Locker</strong></td><td><strong>Deposit</strong></td><td><strong>Return</strong></td><td><strong>Loyalty Reward</strong></td></tr><tr><td align="center">0-2 Months</td><td>100.00</td><td>104.50</td><td>10.00  NMS LP</td></tr><tr><td align="center">2-4 Months</td><td>104.50</td><td>109.20</td><td>10.45  NMS LP</td></tr><tr><td align="center">4-6 Months</td><td>109.20</td><td>114.11</td><td>10.92  NMS LP</td></tr><tr><td align="center">6-8 Months</td><td>114.11</td><td>119.25</td><td>11.41   NMS LP</td></tr><tr><td align="center">8-10 Months</td><td>119.25</td><td>124.61</td><td>11.92   NMS LP</td></tr><tr><td align="center">10-12 Months</td><td>124.61</td><td>130.22</td><td>12.46  NMS LP</td></tr><tr><td align="center"></td><td></td><td><strong>130.22 NMSP</strong></td><td><strong>67.16 NMS LP</strong></td></tr><tr><td align="center"><strong>4-Month Locker</strong></td><td></td><td></td><td></td></tr><tr><td align="center">0-4 Months</td><td>100.00</td><td>111.90</td><td>25.00  NMS LP</td></tr><tr><td align="center">4-8 Months</td><td>111.90</td><td>125.21</td><td>27.97   NMS LP</td></tr><tr><td align="center">8-12 Months</td><td>125.21</td><td>140.11</td><td>31.30   NMS LP</td></tr><tr><td align="center"></td><td></td><td><strong>140.11 NMSP</strong></td><td><strong>84.27 NMS LP</strong></td></tr><tr><td align="center"><strong>6-Month Locker</strong></td><td></td><td></td><td></td></tr><tr><td align="center">0-6 Months</td><td>100.00</td><td>124.50</td><td>50.00   NMS LP</td></tr><tr><td align="center">6-12 Months</td><td>124.50</td><td>155.00</td><td>62.25   NMS LP</td></tr><tr><td align="center"></td><td></td><td><strong>155.00 NMSP</strong></td><td><strong>112.25 NMS LP</strong></td></tr><tr><td align="center"></td><td></td><td></td><td></td></tr></tbody></table>

Note: Future locker APY's may change according to [Supply Control Policy](../../features/supply-control-policy); however, this change in the APY does will not affect already sealed lockers.



