# Staking

## What is Staking

**Staking is the primary value accrual strategy of Values.** Stakers stake their VALUES token on the Values website to earn rebase rewards. The rebase rewards come from the proceed from bond sales, and can vary based on the number of VALUES token 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 VALUES token translates into a constantly falling cost basis converging on zero. This means even if the market price of VALUES token drops below your initial purchase price, given a long enough staking period, the increase in your staked VALUES token balance should eventually outpace the fall in price.

**When you stake, you lock $VALUES and receive an equal amount of sVALUES.** Your sVALUES balance rebases up automatically at the end of every epoch. **sVALUES** is transferable and therefore composable with other DeFi protocols.

**When you unstake, you burn sVALUES and receive an equal amount of VALUES.** 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 VALUES token (if any) will continue to receive rebase rewards.
