# Staking

Staking in Clash of Coins is designed to support ecosystem stability and reward participants who actively contribute to it.

<https://clashofcoins.com/token/staking>

### **How Staking Rewards Work**

Staking rewards are divided into two parts:

1. **Dynamic APY (Annual Percentage Yield)**:
   * The APY rate changes based on three factors: the size of your stake, the duration of your staking period, and the total amount of tokens staked in the pool.
   * The larger your stake and the longer you keep it locked, the higher your potential rewards.
2. **Activity Points**:
   * Activity Points are generated based on the size and duration of your stake.
   * These points give players the opportunity to receive token rewards at the end of each season.

### **Unstaking Process and Penalties**

If you decide to unstake your tokens, please note that there is a **3-day cooldown period** for security purposes.

* To start the process, initiate the unstake request. After the cooldown, manually withdraw your tokens.
* Both actions require your confirmation through your wallet.

**Early Unstaking Penalties**

If you withdraw your stake before the end of the chosen lock period, your APY earnings will be reduced:

* **75% penalty** if you unstake after half of the staking period.
* **100% penalty** if you unstake before reaching half of the staking period.
* The principal (staked amount) is returned in full, and the penalty only affects your earned APY rewards.

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### Activity Points Distribution

* **Minimum Stake for Points**: Points are awarded only if you stake at least **10,000 $OWB**.
* **Earning Points**: Points start accumulating from the moment you stake, but you receive the first batch after the first full month.
* **Monthly Payout**: After the initial month, points are credited on a monthly basis.\
  Once points are credited to your balance, they remain yours regardless of when you decide to unstake.
* **Pending Points for the Current Month**:
  * Unstaking before the **middle of the month** results in losing **100% of the points** for that month.
  * Unstaking after the **middle of the month** results in a **75% reduction** of the month’s points.
* **Passive Income after Lock Period**:
  * If you continue staking after the initial lock period ends, your stake will automatically generate passive income without requiring any additional actions.

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### How to Stake Your OWB Tokens

1. Visit the staking page: [Clash of Coins Staking](https://clashofcoins.com/token/staking)
2. Click **Connect Wallet** and select your preferred wallet.
   * Confirm the connection by signing the message (“Sign to verify”).
3. Once connected, your wallet address and OWB balance will be visible in the top right corner.
4. In the **Stake more $OWB** field, enter the number of tokens you wish to stake, or click **MAX** to select your entire balance.
5. Adjust the **staking duration** using the slider (from 30 to 365 days). The longer the period, the higher the potential rewards.
6. Click **Stake Now**.
   * Confirm the transaction in your wallet.
   * The button will change from **Processing** to **Complete**, indicating successful staking.
7. Congratulations! Your tokens are now generating rewards.

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### How to Unstake Your OWB Tokens

1. Connect your wallet on the staking page.
2. Click **Unstake Your OWB**.
   * A warning message will display your accumulated rewards and any applicable penalty.
3. Click **Unstake Anyway** and sign the transaction.
4. After the **3-day cooldown**, return to the page and click **Unlock Tokens**.
   * Sign the transaction to receive your tokens back.
5. Your tokens will be transferred to your wallet.

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#### Upcoming Features

Soon, you’ll be able to make purchases in the shop using staked tokens. Stay tuned for updates!\
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<https://clashofcoins.com/token/staking>