SODA staking rewards are distributed by depositing them directly into the staking pool, which increases the value of xSODA held by stakers.
π§ Rewards work by increasing the value of xSODA, not by sending tokens to your wallet. Rather than receiving separate reward payments, the SODA backing your xSODA grows automatically over time.
The Staking Pool Mechanism
When you stake SODA on SODAX Stake, your tokens are added to a shared staking pool. You receive xSODA in return, which represents your proportional share of that pool.
As the SODAX system generates fees, a 20% share is deposited into this staking pool on a regular basis. Each deposit increases the total SODA in the pool, which means every unit of xSODA becomes redeemable for more SODA than before.
What This Means for You
You do not need to manually claim or re-stake your rewards. Because the pool grows automatically, your xSODA continuously increases in value relative to SODA. When you eventually unstake, you will receive more SODA than you originally deposited, reflecting the rewards that accumulated during your staking period.
For more on how rewards are calculated, see "What APY can I expect from SODAX Stake?". To understand where the rewards come from, see "Where do SODA staking rewards come from?"
π‘ Your rewards compound automatically. Because deposited fees increase the pool for all stakers, and your share is proportional to your xSODA holdings, the effect is similar to compound interest without any manual action required.
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