# Staking Benefits (utility)

Staking LDY converts the token into **veLDY**, a non-transferable governance and yield-bearing position represented as an **on-chain veNFT**.\
This design aligns economic participation with long-term commitment to the protocol.

When you stake LDY, you receive:

1. **Governance Power** (vote weight scales with lock duration)
2. **Protocol Revenue Share** (distributed through buybacks to veLDY holders)
3. **Operational Advantages inside the protocol**

***

### **How Staking Works**

| Input               | Output                       | Meaning                                           |
| ------------------- | ---------------------------- | ------------------------------------------------- |
| **LDY**             | Locked for a chosen duration | You choose how long you commit your tokens        |
| **veNFT (veLDY)**   | Non-transferable             | Represents your staking position and voting power |
| **Boosted Rewards** | Scales with lock duration    | Longer lock → higher yield share + more influence |

### **What Stakers Receive**

#### **1. Share of Protocol Revenue (Real Yield)**

Ledgity generates yield from its RWA strategy.\
A portion of performance fees is used to:

* Buy LDY on the open market
* Distribute it to veLDY holders

This means:

**More TVL → More yield generated → More buyback → Higher rewards for stakers.**

This is **value capture from real economic activity**, not emissions.

***

#### **2. Governance Rights (veLDY = Voting Power)**

Stakers decide on:

| Decision Area       | Examples                                       |
| ------------------- | ---------------------------------------------- |
| Protocol Parameters | Performance fee split, liquidity buffer ratios |
| Vault Listings      | Which RWA strategies or new vaults are enabled |
| Treasury Allocation | Partner incentives, liquidity support, grants  |
| Council Elections   | Who executes governance decisions              |

**Stakers are the DAO.**\
The Council **executes**, but does not override staker votes.

***

#### **3. Withdrawal Priority & Fee Reductions**

| Benefit                          | Description                                                |
| -------------------------------- | ---------------------------------------------------------- |
| **Priority Withdrawals**         | High veLDY scores receive faster exit processing.          |
| **Reduced or 0% Withdrawal Fee** | veLDY stakers unlock reduced protocol fees.                |
| **Preferred Liquidity Access**   | Institutional stakers may schedule redemptions in advance. |

This ensures that **aligned, long-term participants receive smoother liquidity access**.

***

#### **4. Access to Boosted Vaults**

Some yield vaults offer **boosted APY** for veLDY stakers.

| Vault Type      | Requirement                   | Benefit                   |
| --------------- | ----------------------------- | ------------------------- |
| L-Boost Vaults  | veLDY balance threshold       | Enhanced APY              |
| Leverage Vaults | veLDY lock duration threshold | Higher capital efficiency |

This reinforces a **flywheel** between staking and vault participation.

***

#### **5. Access to Holders-Only Privileges**

Stakers gain:

* Early access to new vaults & product launches
* Access to governance discussions and research channels
* Invitations to **Holder-Only IRL + digital events**
* Optional institutional-grade reporting (for qualified entities)

***

### **In Summary**

| Staking LDY Gives You              | Why It Matters                                    |
| ---------------------------------- | ------------------------------------------------- |
| Revenue Share from real yield      | Earn from actual economic activity, not emissions |
| Governance Power via veNFT         | Shape how the protocol evolves                    |
| Withdrawal & fee advantages        | Operational benefits over non-stakers             |
| Boosted yields in advanced vaults  | Higher efficiency for active users                |
| Holder-gated perks & opportunities | Access and influence                              |

> **Staking LDY is how users participate in ownership, decision-making, and value capture across Ledgity.**