Plain English Guide

Staking Explained
for Non-DeFi People

No yield farming. No liquidity pools. No impermanent loss. Just a simple explanation of how staking works in Spirit Protocol.

Part 1

What is Staking?

Staking = parking your tokens for a while to show you're committed.

Think of it like a certificate of deposit (CD) at a bank. You agree not to touch your money for a certain time. In return, you get better interest rates. Simple as that.


    NORMAL HOLDING                    STAKING
    ==============                    =======

    You have tokens                   You have tokens
         |                                 |
         v                                 v
    You can sell                     You LOCK them
    anytime                          for 1 week - 3 years
         |                                 |
         v                                 v
    No bonus                         You get BONUS REWARDS
                                     (the longer you lock,
                                      the bigger the bonus)

The key insight: staking is voluntary. You choose how long to lock. You get rewarded for patience.

Part 2

Why Does Spirit Use Staking?

Three reasons:

1. It Prevents Dumping

If tokens are locked, they can't be panic-sold. This creates price stability. Artists can plan their future without worrying about wild market swings.

2. It Aligns Incentives

People who lock longer get more rewards. This means people who believe in Spirit's long-term vision get the biggest share. Short-term speculators get less.

3. It Rewards the Believers

We want Spirit to be owned by people who care about AI agents having fair revenue infrastructure. Staking rewards those who commit.


    SPECULATORS                       BELIEVERS
    ===========                       =========

    Want quick gains                  Want to see Spirit succeed
    Won't lock tokens                 Happy to lock for years
    Get 1x rewards                    Get up to 36x rewards
    Small influence                   Big influence on governance

Not a pump. It's a pilgrimage. Staking is how we filter for fellow pilgrims.

Part 3

Two Types of Staking

Spirit has two ways to stake. They're related but different.


+------------------------------------------------------------------+
|                                                                  |
|  TYPE 1: STAKE AGENT TOKENS --> EARN SPIRIT                      |
|                                                                  |
|  You have:     $ABRAHAM, $SOLIENNE, etc. (agent tokens)          |
|  You stake:    Lock your agent tokens                            |
|  You earn:     SPIRIT tokens as rewards                          |
|                                                                  |
|  Example:      Lock 100 $ABRAHAM for 1 year                      |
|                Earn SPIRIT rewards monthly                       |
|                                                                  |
+------------------------------------------------------------------+
|                                                                  |
|  TYPE 2: HOLD SPIRIT --> RECEIVE AGENT TOKENS                    |
|                                                                  |
|  You have:     $SPIRIT (the protocol token)                      |
|  You hold:     Just keep it in your wallet                       |
|  You receive:  Agent tokens automatically "airdropped"           |
|                                                                  |
|  Example:      Hold 10,000 SPIRIT                                |
|                Receive $ABRAHAM, $SOLIENNE, etc. monthly         |
|                                                                  |
+------------------------------------------------------------------+

Type 1: Support Specific Agents

If you believe in Abraham specifically, stake $ABRAHAM tokens. You're betting on that agent's success.

Type 2: Support the Whole Ecosystem

If you believe in the Spirit Protocol vision overall, hold SPIRIT. You'll receive tokens from all agents in the network.

Part 4

The Flywheel

These two staking types create a self-reinforcing loop:


                    THE FLYWHEEL
                    ============

              +---------------------------+
              |                           |
              v                           |
         HOLD SPIRIT                      |
              |                           |
              v                           |
    RECEIVE AGENT TOKENS                  |
    (automatic airdrops)                  |
              |                           |
              v                           |
        STAKE THEM                        |
        (Type 1 staking)                  |
              |                           |
              v                           |
        EARN SPIRIT  ---------------------+
        (as rewards)


    The more SPIRIT you hold, the more agent tokens you get.
    The more agent tokens you stake, the more SPIRIT you earn.
    Round and round it goes.

Real Example: Abraham Supporter

You hold 10,000 SPIRIT. Each month, you automatically receive some $ABRAHAM tokens (because Abraham routes revenue through Spirit). You stake those $ABRAHAM tokens for 1 year. Now you're earning more SPIRIT as rewards. Next month, you get more $ABRAHAM. Stake again. Your position compounds over time.

This isn't complicated DeFi magic. It's just: hold → receive → stake → earn → repeat.

Part 5

Lock Periods & Multipliers

The longer you lock, the bigger your reward multiplier:


+------------------+------------------+------------------+
|  LOCK DURATION   |  MULTIPLIER      |  WHAT IT MEANS   |
+------------------+------------------+------------------+
|  1 week          |  1x              |  Base rewards    |
+------------------+------------------+------------------+
|  1 month         |  4x              |  4x base         |
+------------------+------------------+------------------+
|  3 months        |  9x              |  9x base         |
+------------------+------------------+------------------+
|  6 months        |  10x             |  10x base        |
+------------------+------------------+------------------+
|  1 year          |  12x             |  12x base        |
+------------------+------------------+------------------+
|  3 years         |  36x             |  36x base        |
+------------------+------------------+------------------+

What "Multiplier" Means

If the base reward is 1% per month, a 12x multiplier means you effectively get 12% per month. You're not getting more tokens total—you're getting a bigger share of the reward pool.

Why 36x for 3 Years?

Spirit is building infrastructure for decades, not quarters. Abraham alone has a 13-year commitment. People who lock for 3 years are betting on that long-term vision. They deserve the biggest reward.

Important: You Can't Unlock Early

Once you lock for 3 years, those tokens are locked for 3 years. No exceptions. No emergency withdrawals. This is by design—it's what makes the commitment meaningful. Only lock what you're truly willing to hold.

Part 6

Artist Auto-Staking

When artists join Spirit, their tokens are automatically staked for 52 weeks:


    ARTIST JOINS SPIRIT
           |
           v
    Receives creator allocation
    (50% goes to artists)
           |
           v
    Tokens AUTO-LOCKED for 52 weeks
    (12x multiplier automatically applied)
           |
           v
    After 52 weeks: tokens unlock
           |
           v
    Artist can hold, sell, or re-stake

Why Auto-Stake Artists?

Artists are the most important people in Spirit. We want them aligned with long-term success, not short-term token prices. Auto-staking ensures every artist has skin in the game for at least a year.

What Artists Get

During the 52-week lock, artists earn staking rewards (12x multiplier). They're not just waiting—they're earning. After 52 weeks, they have more tokens than they started with.

Example: Gene Kogan (Abraham's Trainer)

Gene receives his creator allocation when Abraham joins Spirit. Those tokens auto-stake for 52 weeks at 12x. During that year, Abraham generates revenue, Gene earns staking rewards, and his position grows. After 52 weeks, Gene can choose to re-stake for another 3 years (36x) or hold liquid. His choice.

Part 7

Frequently Asked Questions

You can't withdraw early. That's the whole point. The lock is enforced by a smart contract—there's no "unlock" button for us to press even if we wanted to. Only stake what you're truly willing to lock for the full duration.

Your staked tokens can't be "slashed" or taken away (unlike some other protocols). But the value of those tokens can go up or down while locked. If the token price drops 90% during your lock period, you still get your tokens back—they're just worth less. This is crypto. Prices are volatile. Never stake more than you can afford to lose.

A portion of the total SPIRIT supply is allocated for staking rewards. This isn't new tokens being printed—it's a predetermined pool being distributed over time to stakers. The more people stake, the smaller each person's share. The longer you lock, the bigger your share.

Holding means tokens sit in your wallet. You can sell anytime but get no staking rewards. Staking means tokens are locked in a smart contract. You can't sell during the lock period but you earn rewards. Both have their place—liquid holdings let you react to opportunities; staked holdings earn passive rewards.

No. Spirit staking is much simpler. You're not providing liquidity to a trading pool. There's no impermanent loss. No complex strategies. You just lock tokens, choose a duration, and earn rewards. It's closer to a traditional CD than to DeFi yield farming.

Yes. Rewards accrue over time but you need to claim them (which costs a small transaction fee). We recommend claiming periodically—maybe monthly—rather than daily, since each claim costs gas. Your unclaimed rewards don't expire.

Yes. Spirit staking works with any Ethereum-compatible wallet, including Ledger and Trezor hardware wallets. In fact, we recommend using a hardware wallet for any significant holdings.

Your tokens become withdrawable. You can claim them back to your wallet anytime after the lock expires. Or you can re-stake them for a new lock period (and continue earning rewards). Your choice. There's no penalty for waiting to withdraw.

Reference

Key Numbers


+---------------------------+---------------------------+
|                           |                           |
|  LOCK PERIODS             |  MULTIPLIERS              |
|                           |                           |
|    Minimum: 1 week        |    1 week:    1x          |
|    Maximum: 3 years       |    1 month:   4x          |
|                           |    3 months:  9x          |
|                           |    6 months:  10x         |
|                           |    1 year:    12x         |
|                           |    3 years:   36x         |
|                           |                           |
+---------------------------+---------------------------+
|                           |                           |
|  ARTIST AUTO-STAKE        |  REWARD SOURCE            |
|                           |                           |
|    Duration: 52 weeks     |    Pre-allocated pool     |
|    Multiplier: 12x        |    (not new inflation)    |
|    Applies to: 50%        |                           |
|    creator allocation     |                           |
|                           |                           |
+---------------------------+---------------------------+

Ready to Learn More?

Staking is just one part of Spirit Protocol. Explore the full picture.