# Staking (🌳,🌳) Staking is the primary reward distribution mechanism of the protocol. It is intended to be the primary mechanism of value accrual for the majority of users. Whenever the protocol has an excess of reserves per token (i.e when the CC of the treasury is higher than the assets needed to back AIR), the protocol will mint and distribute tokens to the stakers. The amount minted and distributed is controlled by a variable named the reward rate. This is the % of supply that is rebased. This massively slows down how fast the protocol expands supply, as doing so is detrimental to the health (rapid expansion without backing causes a price collapse). AIR and sAIR always have a 1:1 ratio, meaning that you will always obtain 1 sAIR for every 1 AIR and vice versa via staking or unstaking on the Pulse AirDAO Dapp. $$ AIR=sAIR $$ When a rebase occurs, the treasury deposits AIR into the distributor contract, which deposits it in the staking contract. Since there is now more AIR then there is sAIR, the sAIR is rebased to keep them in parity. $$ Reward Rate=1-AirDeposits/sAirOutstanding $$ Because not all AIR is staked, the user gains a larger piece of the share of rebases: $$ RewardYield = RewardRate/(%Staked\*%Circulating) $$ This translates to [AKR](broken://pages/-MkOOcN_BbtVmU2EmJaQ#akr) $$ (1+RewardYierd)^(365\*24/(BlockTimeInHours)) $$ --- # 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://pulse-airdao.gitbook.io/pulse-airdao/tokonomics-and-mechanisms/staking.md?ask= ``` 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.