STRT staking
In the initial 2 year phase, STRT staking rewards are provided from the ecosystem token reserve and serve a number of purposes:
• Reward users who lock up their tokens in the initial 2 year phase of the protocol when protocol revenue will be comparatively low.
• Encourage users to participate in protocol governance.
• Limit circulating supply and align incentives of stakers, users, and developers.
STRT tokens can be staked for between 1 and 36 months. Staked STRT tokens grant voting power for governance proposals; anybody who has staked more than 100,000 STRT qualifies to propose a governance vote.

# Governance

The voting power granted by a stake is determined by the formula:
$Voting Power=Staked STRT *Months/36$
Meaning a stake of 1 STRT for 3 years grants a voting power of 1, whereas a stake of 1 STRT for 1 year grants voting power of 1/3.

# Staking rewards

Staking rewards will initially be paid from the ecosystem fund but will slowly be migrated to protocol revenue once the protocol reaches sustainable revenue levels.
Staking rewards will be paid out to STRT stakers proportionally to their share of total voting power. These rewards are paid in STRT tokens and are obtained by the Treasury as part of the buy-and-distribute process.