# Staking

## What is Staking? <a href="#what-is-staking" id="what-is-staking"></a>

**Staking is the primary value accrual strategy of Cooky Finance.** Stakers stake their **CKY** tokens on our website to earn rebase rewards. The rebase rewards come from the proceed from **minter sales**, and can vary based on the number of CKY staked in the protocol and the reward rate set by monetary policy.**Staking is a passive, long-term strategy.** The increase in your stake of **CKY** translates into a constantly falling cost basis converging on zero. This means even if the market price of CKY drops below your initial purchase price, given a long enough staking period, the increase in your staked CKY balance should eventually outpace the fall in price.

**When you stake, you lock CKY and receive an equal amount of sCKY.** Your sCKY balance rebases up automatically at the end of every epoch. **sCKY** is transferable and therefore composable with other DeFi protocols. **When you unstake, you burn sCKY and receive an equal amount of CKY tokens**. Unstaking means the user will forfeit the upcoming rebase reward. Note that the forfeited reward is only applicable to the unstaked amount; the remaining staked **CKY** (if any) will continue to receive rebase rewards.


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