# Staking

## What is Staking?&#x20;

Stakers can stake their ST tokens on the Sealem website to receive SR staking rewards. Staking rewards come from the proceeds of bond sales and the fees for withdrawing tokens in the game, and can vary depending on the amount of ST staked in the protocol and the reward rate set by monetary policy.&#x20;

Staking is a passive long-term strategy. Your increase in ST shares translates into a falling cost base, tending to zero. This means that even if the market price of ST is lower than your initial purchase price, with a long enough staking period, the growth of your staked ST balance should eventually outpace the price drop.


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