How does staking work in Lido DAO?
Staking in Lido DAO is a process of locking up tokens in order to earn rewards.
Stakers are rewarded for their commitment to the network by receiving a portion of the fees generated by transactions on the network. The amount of rewards earned depends on the amount of tokens staked and the length of time they are staked for. To stake tokens, users must first deposit them into a smart contract.
This smart contract is responsible for managing the staking process and distributing rewards to stakers. Once tokens are deposited, they can be locked up for a certain period of time, usually ranging from one week to one year. During this period, users will not be able to withdraw their tokens until the end of the lock-up period.
Once the lock-up period has ended, users can withdraw their tokens and any rewards earned during that period. Rewards are distributed proportionally based on how much each user has staked and how long they have been staked for. The more tokens that are staked and the longer they are locked up, the higher rewards will be earned by each user.
