Staking (3, 3)
Exponential asset growth through compounding interests.
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!
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!