# STAKING

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#### <mark style="color:$success;">**Overview**</mark>

Staking **$CPX** allows holders to earn additional **$CPX** rewards while supporting the long-term stability and growth of the **CipherX ecosystem**.

The **CipherX Staking Program** is powered by fees generated through our integrated network of exchange partners. These fees are automatically used to buy back **$CPX** from the open market, creating consistent demand and rewarding committed participants.

A portion of these buybacks — **10% of total partner fees** — is allocated directly to the staking pool. This process is managed by an automated buyback mechanism, executing continuous, randomized purchases of **$CPX–SOL** pairs on Solana. The acquired tokens are then bridged to Ethereum weekly, where they are automatically deposited into the staking contract and distributed to stakers.

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#### <mark style="color:$success;">**How It Works**</mark>

<mark style="color:$info;">**Reward Allocation**</mark>

Rewards are distributed based on each participant’s share of the total staked pool. The higher your stake, the greater your portion of weekly rewards.

<mark style="color:$info;">**Continuous Reward Flow**</mark>

Staking rewards are distributed in a smooth, real-time sequence over a rolling 7-day period. Each Monday at 08:00 UTC, the staking smart contract adds the previous week’s accumulated **$CPX** buybacks to the distribution pool, which are then streamed to stakers every second throughout the week.

Real-time APY calculations are displayed on the staking dashboard, refreshed every 30 seconds for transparency and accuracy.

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#### <mark style="color:$success;">**Unstaking Options**</mark>

CipherX offers flexible withdrawal options, allowing users to choose between delayed, penalty-free unstaking or instant withdrawals with a small penalty.

<mark style="color:$info;">**Option 1: 14-Day Notice (No Penalty)**</mark>

Submit a 14-day notice to unstake without any penalties. During this period, your tokens remain locked and do not generate additional rewards. After the notice expires, you can claim your original stake plus all rewards earned up to the notice date.

<mark style="color:$info;">**Option 2: Immediate Withdrawal (With Penalty)**</mark>

For users who prefer immediate access, CipherX allows instant unstaking with a **14% penalty** applied to the total staked balance, including earned rewards.

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#### <mark style="color:$success;">**Penalty Distribution**</mark>

The 14% withdrawal penalty is reinvested into the CipherX ecosystem to maintain fairness and sustainability:

* **60% → Staking Pool**\
  Returned to the staking pool, increasing future rewards for remaining stakers.
* **20% → Token Burn**\
  Permanently removed from circulation, reinforcing CipherX’s deflationary model.
* **20% → Treasury**\
  Allocated to the CipherX Treasury to support continued development, partnerships, and ecosystem growth.

Penalty-derived rewards are released back into the staking pool gradually over **30 days**, following the same smooth, per-second distribution flow.

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#### <mark style="color:$success;">**Terms of Service**</mark>

Participation in the CipherX Staking Program requires agreement with our **Terms of Service**. Please review them carefully before staking to ensure full understanding and compliance.