# PCM Staking Feature - How It Works

## Overview of Staking

Staking PCM provides community members an opportunity to earn rewards by committing to lock their PCM tokens for a specific period, helping to support and secure the PiChain Global Ecosystem. Users can select from different staking periods, each with a unique Annual Percentage Rate (APR) to incentivize long-term commitment.

By staking, participants actively contribute to the network’s health and growth, ensuring liquidity and reinforcing the value of PCM across the ecosystem.

## Tokenomics & Allocation of PCM Staking Rewards

* **Total PCM Allocated for Rewards:** 43% of the total PCM supply is reserved for community rewards.
* **Staking Rewards:** Of this, 26% is specifically designated for staking rewards, which translates to **56,000,000 PCM** (11% of the total supply).

These rewards aim to provide an attractive incentive for PCM holders to stake, promoting a sustainable and robust ecosystem built around a long-term vision.\
\
This reward pool is planned to be distributed over **10 years**, ensuring the long-term sustainability of the PCM staking program. This structured, decade-long allocation supports ongoing participation and rewards for users while maintaining stability and value for the PCM ecosystem as it grows and evolves.

## Staking Rewards Calculation (1st Year)

PCM staking rewards are structured to encourage users to lock their tokens for longer periods by offering higher APRs on extended locking durations.

**Staking Periods & Expected Rewards:**

<table><thead><tr><th width="182">Staking Period</th><th width="123">APR</th><th>Expected Rewards (per 100 PCM staked)</th></tr></thead><tbody><tr><td>90 days</td><td>12%</td><td>2.959 PCM</td></tr><tr><td>180 days</td><td>15%</td><td>7.397 PCM</td></tr><tr><td>1 year</td><td>20%</td><td>20 PCM</td></tr><tr><td>2 years</td><td>25%</td><td>50 PCM</td></tr><tr><td>3 years</td><td>30%</td><td>90 PCM</td></tr></tbody></table>

These reward rates allow users to select staking options that align with their personal goals, from shorter-term benefits to more substantial returns over longer terms.\
\
**Timing of Staking Rewards Distribution**

Staking rewards will be distributed to users once the staking period is complete. At the end of the lockup period, you will receive both your staked PCM and the staking rewards.

<figure><img src="/files/dGczFr4OHViUo8YqYOjF" alt=""><figcaption></figcaption></figure>

## Staking Rewards Structure Over 10 Years

&#x20;To balance incentives with ecosystem growth, PCM staking rewards will follow a scheduled reduction, known as "**rewards thirdening**," during the first five years. This approach gradually reduces the rewards to support long-term stability and reward the early participants.

<table><thead><tr><th width="152">Staking Period</th><th width="123">Year 1 (current)</th><th>Year 2</th><th>Year 3</th><th>Year 4</th><th>Year 5-10</th></tr></thead><tbody><tr><td>90 days</td><td>1<strong>2.00%</strong></td><td>8.00%</td><td>5.33%</td><td>3.56%</td><td>2.37%</td></tr><tr><td>180 days</td><td><strong>15.00%</strong></td><td>10.00%</td><td>6.67%</td><td>4.44%</td><td>2.96%</td></tr><tr><td>1 year</td><td><strong>20.00%</strong></td><td>13.33%</td><td>8.89%</td><td>5.93%</td><td>3.95%</td></tr><tr><td>2 years</td><td><strong>25.00%</strong></td><td>16.67%</td><td>11.11%</td><td>7.41%</td><td>4.94%</td></tr><tr><td>3 years</td><td><strong>30.00%</strong></td><td>20.00%</td><td>13.33%</td><td>8.89%</td><td>5.93%</td></tr></tbody></table>

By the end of the fifth year, the APR rates stabilize, ensuring long-term sustainability while continuing to reward participants who choose to stake.<br>

**"Rewards Thirdening" Mechanism Explained**

To ensure long-term sustainability within the PCM ecosystem, staking rewards will decrease gradually over the first five years through a process known as "rewards thirdening." Under this model, the Annual Percentage Rate (APR) reduces by one-third each year over the initial five years, gradually lowering inflationary pressure while maintaining a fair reward system for early participants.

Here are some examples to help clarify how this works:

* **If you start a 3-year stake during the first year (November 2024- October 2025)**: You will lock your PCM at a 30% APR, and this rate remains fixed for the entire 3-year period. This means you’ll earn 30% APR in the first, second, and third years of your stake.
* **If you choose to start staking later**: For instance, if you wait five years (2029) and then initiate a 3-year stake, the APR will be 5.93% due to the reward reduction in effect at that time.
* **If you choose to start in November 2025 with a 3-year staking period**: At that point, the APR will be 20%, as opposed to the initial 30%, reflecting the adjusted rate for that timeframe.

<figure><img src="/files/XxY49clYDZVSkTDgbL86" alt=""><figcaption></figcaption></figure>

#### Encouraging Early Participation in Staking

To incentivize early participation, we’ve structured staking rewards to be higher in the early years. As the reward rate decreases over time, early stakers benefit from better returns, reflecting our commitment to reward long-term supporters of the PCM ecosystem. If you plan to stake PCM for an extended period, starting earlier allows you to lock in the highest available rewards.

##

## Case Studies

**Case Study 1: Staking 500 PCM for 180 Days (Year 1)**

* **Staking Period:** 180 days
* **APR:** 15%
* **Expected Reward:** 500 \* 0.15 / 2 = 37.5 PCM

**Case Study 2: Staking 1,000 PCM for 3 Years (Year 1)**

* **Staking Period:** 3 years
* **APR:** 30%
* **Expected Reward:** 1,000 \* 0.3 \* 3 = 900 PCM

These case studies illustrate the returns that users can anticipate based on their staking period and amount, with longer durations yielding higher returns.

## Frequently Asked Questions (Q\&A)

**Q1: What is the minimum amount of PCM required to stake?**\
A: The minimum amount required to stake is **10 PCM**.

**Q2: Is there a staking quota?**\
A: Yes, the staking quota is limited and offered on a first-come, first-served basis. The available quota is updated monthly and displayed on the PCM Wallet staking page.

**Q3: How many active staking instances can I have?**\
A: Users can have up to **10 active staking contracts** at once, each with different amounts and durations if desired.

**Q4: Can I withdraw my PCM before the staking period ends?**\
A: No, staking amounts and rewards are locked for the selected period. Both the staked amount and rewards are only accessible after the lockup period.

**Q5: When can I withdraw my staking rewards?**&#x20;

You can claim it and receive your staking rewards along with your principal at the end of the staking period.

**Q6: How does the "rewards thirdening" affect APR?**\
The APR will decrease by one-third each year for the first five years. Early stakers will enjoy higher APR rates, encouraging early participation.\
\ <br>


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://pichain-global.gitbook.io/pcm-wallet/tutorial-for-pcm-wallet/pcm-staking-feature-how-it-works.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.