> For the complete documentation index, see [llms.txt](https://fantomdao.gitbook.io/fantom-dao/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://fantomdao.gitbook.io/fantom-dao/basics/wrapping.md).

# Wrapping

Note: Nothing on this page, or any other page of our documentation constitutes or should be taken as financial advice. Please consult with a registered financial advisor, accountant, and legal specialist. Always follow the laws and regulations of your country or jurisdiction.

## What is $w**DREAM**? <a href="#what-is-wshec" id="what-is-wshec"></a>

Users can choose to wrap their **DREAM** tokens which converts it to standardised ERC20 tokens (**wDREAM**). Instead of your token amount increasing, the value of tokens itself increases. This allows you to gain the rewards you would normally gain from Staking, without having an increasing amount of tokens in your portfolio. Users can also unwrap their **wDREAM** tokens to receive **DREAM** at any time. The price of **wDREAM** will increase as if it were rebasing, without needing to rebase.

## Why is this relevant? <a href="#why-is-this-relevant" id="why-is-this-relevant"></a>

In many countries, there is a clear distinction between *Income Tax* and *Capital Gains Tax.*

* Income Tax applies to regular income, usually received for work done or investments.
* Capital Gains Tax applies to money gained from (for example) the sale of an asset like a house or investment.

In many cases, Capital Gains Tax is lower than Income Tax, and so it would be diligent to make it as clear as possible to the taxation authorities of your country/jurisdiction that you are under capital gains tax.