# Community Staking

Community Staking is the primary entry point for users who want to **participate in the protocol’s governance** and **earn rewards backed by real economic yield**.

When you stake LDY, you receive **veLDY**, represented as an **on-chain veNFT**.\
This grants you:

* Governance voting power
* **A share of protocol revenue via buybacks**
* Withdrawal queue priority & reduced exit fees
* Eligibility for boosted vaults and early product access

Community staking aligns long-term participants with protocol growth.

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### **How Rewards Work**

The protocol collects performance fees from the RWA strategy.\
These fees are used to **buy LDY from the open market**.

**80% of all repurchased LDY is distributed to Community Stakers (veLDY holders).**\
The remaining **20%** goes to the **Council Pool** to incentivize execution and risk oversight.

> **Stakers receive the majority of value generated by the protocol.**

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### **Benefits for Community Stakers**

| Benefit                          | Description                                                                           |
| -------------------------------- | ------------------------------------------------------------------------------------- |
| **Real Yield Rewards**           | **80% of all buybacked LDY** is distributed to veLDY stakers                          |
| **Governance Voting Power**      | Influence protocol parameters, vault listings, fee schedules, and treasury allocation |
| **Withdrawal Queue Priority**    | Longer lock = earlier liquidity in queue processing                                   |
| **Reduced / 0% Withdrawal Fees** | Higher veLDY scores unlock lower exit fees                                            |
| **Boosted Vault Eligibility**    | Some strategies offer enhanced APY for veLDY holders                                  |
| **Early Access**                 | Priority access to new vaults, product releases, and chain deployments                |

> **Community stakers *****are***** the DAO.**\
> They decide how value is allocated and benefit from protocol success.