---
## APY Scenarios
**APY depends on total participation:**
| Staking Participation | Total Staked | Year 1 Emissions | APY |
|----------------------|--------------|------------------|-----|
| 10% of supply | 100M | 105M | 105% |
| 20% | 200M | 105M | 52.5% |
| 30% | 300M | 105M | 35% |
| 40% | 400M | 105M | 26.25% |
| 50% | 500M | 105M | 21% |
**Target Range: 21-35% APY** (assumes 30-50% participation)
**Lower participation = Higher APY for stakers**
This creates self-balancing mechanism:
- APY too low → People unstake → APY increases → Attracts stakers back
- APY high → More people stake → APY decreases → Equilibrium
---
## Staking Timeline
### Phase 1: Stake (Day 1)
Stake immediately after token launch. Benefits activate:
- ✅ Zero platform fees (instant)
- ✅ Boosted visibility (if creator)
- ✅ Rewards begin accruing
### Phase 2: Cliff (Months 1-6)
**6-Month Waiting Period**
Rewards accumulate but cannot be claimed for 6 months.
**Why the Cliff:**
- Filters mercenary capital (short-term flippers)
- Ensures committed stakers (not just yield chasers)
- Protects long-term community (prevents immediate dumps)
- Creates sustainable APY (without cliff, everyone stakes for 1 day then dumps)
**What happens during cliff:**
- Your stake remains locked (can't unstake)
- Rewards accrue automatically
- Track pending rewards on dashboard
- Zero fees active throughout
### Phase 3: Rewards (Month 7+)
After 6 months, claim your accumulated rewards.
**Claiming:**
- Visit staking dashboard
- Click "Claim Rewards"
- Approve transaction (pay small gas fee)
- Rewards transfer to wallet immediately
**Options after claiming:**
- **Restake:** Compound for higher returns
- **Sell:** Realize profits (convert to stablecoins/fiat)
- **Use:** Spend on platform, tip creators
- **Hold:** Speculate on price appreciation
### Phase 4: Unstaking (Anytime After Cliff)
**No long-term lock** after 6-month cliff.
Unstake anytime:
- Click "Unstake" on dashboard
- Pending rewards claimed automatically
- Principal + rewards return to wallet
- No penalty for unstaking
**Flexibility:** You control your capital. Not locked for years (just 6-month minimum).
---
## Staking Rewards Example
### Example: 10,000 $FAN Staked
**Assumptions:**
- Starting position: 10,000 $FAN
- APY: 35% (target range)
- Restake all rewards (compound)
**5-Year Token Growth:**
| Year | Starting | Rewards | Ending |
|------|----------|---------|--------|
| 1 | 10,000 | 3,500 | 13,500 |
| 2 | 13,500 | 3,038 | 16,538 |
| 3 | 16,538 | 2,310 | 18,848 |
| 5 | 21,420 | - | 21,420 |
**Result:** 10,000 $FAN → 21,420 $FAN over 5 years through compounding.
### Creator Scenario
**Creator earning $10K/month, stakes 50K $FAN:**
**Annual Benefits:**
- Fee savings: $24,000 (0% vs 20% traditional)
- Staking rewards: ~17,500 $FAN
- Governance voting rights
**Fee savings alone justify staking for active creators.**
---
## Staking Benefits Beyond APY
### Zero Platform Fees
Most valuable for high-earning creators:
- $10K/month earnings → $24K/year saved
- $50K/month earnings → $120K/year saved
Fee elimination alone justifies staking.
### Boosted Visibility
**Platform Algorithm Favor (Future):**
- Stakers get discovery boost
- Higher placement in search
- Featured creator slots
- Trending page priority
Creates competitive advantage for stakers.
### Enhanced Earnings
**Affiliate Program:**
- Refer creators to Fanbase
- Earn % of their transactions
- Higher % if staking $FAN
- Passive income stream
---
## Staking vs. Alternatives
### vs. DeFi Yields
| Protocol | APY | Risk | Liquidity | $FAN Staking |
|----------|-----|------|-----------|--------------|
| Aave USDC | 3-5% | Low | High | **21-105% APY** |
| Curve | 5-15% | Medium | Medium | **Higher yield** |
| Uniswap V3 | 10-50% | High (IL) | High | **No IL risk** |
**$FAN Advantages:**
- Higher APY than most DeFi
- No impermanent loss (not LP)
- Additional utility (fee elimination)
- Simpler than complex DeFi
### vs. Other Crypto Staking
| Feature | Typical DeFi | $FAN Staking |
|---------|--------------|--------------|
| Utility beyond yield | Rare | Fee elimination + governance |
| Impermanent loss risk | Often | None (single asset) |
| Complexity | High | Simple |
| Backed by product | Rarely | Working platform |
**$FAN staking offers real utility beyond rewards.**
---
## Staking Strategies
### Strategy #1: Maximum Compound
**Approach:** Restake all rewards, never sell
**Timeframe:** 5+ years
**Result:** Maximum token accumulation
**Best for:** Long-term believers, don't need cash flow
### Strategy #2: Income Generation
**Approach:** Claim rewards, sell for income
**Timeframe:** Monthly/quarterly claims
**Result:** Steady cash flow
**Best for:** Creators using $FAN for living expenses
### Strategy #3: Hybrid
**Approach:** Restake 50%, sell 50%
**Timeframe:** Balanced
**Result:** Moderate compound + some income
**Best for:** Balance growth and liquidity needs
### Strategy #4: Creator Fee Saver
**Approach:** Stake minimum for zero fees, don't care about APY
**Timeframe:** As long as creating
**Result:** Maximum fee savings
**Best for:** Creators prioritizing earnings retention
**Choose based on your goals.**
---
## Risks & Considerations
### APY Decline Over Time
**Reality:** Year 1 = 30% of pool, Year 5 = 10% of pool
APY decreases as emissions taper. This is intentional (sustainable model).
**Mitigation:**
- Compounding offsets declining APY (larger principal)
- Fee elimination remains (independent of APY)
- Revenue can supplement (governance votes to boost)
### 6-Month Cliff
**Reality:** Can't claim for first 6 months.
**Why it exists:** Filters short-term speculators, protects long-term community.
**Mitigation:** Fee savings active immediately. Cliff rewards patience.
### Price Volatility
**Reality:** Token price can fluctuate.
Staking rewards might be worth more or less in USD terms.
**Mitigation:** Focus on token accumulation (not USD value). Long-term holders less sensitive to volatility.
---
## Staking Dashboard Features
**Track Your Performance:**
- Total staked (amount and USD value)
- Pending rewards (claimable after cliff)
- Historical rewards claimed
- Current APY (real-time)
- Projected future earnings
**Actions:**
- Stake additional tokens
- Claim rewards (after cliff)
- Unstake (after cliff)
- Restake rewards (compound)
**On-Chain Verification:**
- View your position in contract
- Verify rewards calculation
- Check total staked across all users
- Transparent, auditable
---
## The Staking Advantage
**Why Stake $FAN:**
**For Creators:**
- Save $24K+/year in fees
- Earn staking rewards (21-35% APY target)
- Governance voting rights
**For Fans:**
- Earn staking rewards
- Reduce transaction costs
- Support ecosystem
**For the Ecosystem:**
- Staking locks supply (reduces circulation)
- Aligned long-term holders
- Reduced sell pressure
**Everyone wins by staking.**
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**Bottom Line:** Staking isn't optional—it's essential for maximizing $FAN value. Zero fees + staking rewards + governance = triple benefit. 6-month cliff filters commitment. 5-year program ensures sustainability.
**Stake early, compound often, benefit forever.**
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**[Continue to Staking Rewards & APY →](staking-rewards-and-apy.md)**
