# Staking (3, 3)

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### **Staking is Fantom DAO's primary strategy for value accumulation.** 

Holders of Fantom DAO who stake their **MAGIC** tokens on the website automatically receive regular rebase rewards (3 times daily), which over time creates exponential asset growth through compounding interests. The rebase rewards are derived from the proceeds of bond sales, which is variable in nature depending on the quantity of **MAGIC** tokens staked in the protocol and the reward rate determined by monetary policy. Check out our calculator to see the 'magic' of compounding interest on the website!

### **Staking is a long-term investment approach.** 

Increases in your compounding interest in **MAGIC** tokens result in a steadily increasing 'profit to loss ratio' irrelevant to changes in price. In other words, even if the market price of **MAGIC** tokens falls below your original purchase price, given a long enough staking period, the increase in your staked **MAGIC** balance will eventually outpace the fall in price.

When you stake, you effectively lock **MAGIC** tokens and receive an equal amount of **DREAM **~~**ABRACADABRA**~~** (staked MAGIC)** tokens, and at the end of each epoch, your ~~**ABRACADABRA**~~** DREAM** balance is automatically rebased up. When you unstake, you burn your ~~**ABRACADABRA**~~ **DREAM** tokens and get an equivalent number of **MAGIC** tokens in exchange. Unstaking will result in the user forfeiting the impending rebase price. Note that the forfeited reward applies only to the unstaked amount, thus, for any leftover ~~**ABRACADABRA**~~** DREAM** you will continue to earn rebase rewards!