> For the complete documentation index, see [llms.txt](https://optimum-treasury.gitbook.io/optimum-treasury/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://optimum-treasury.gitbook.io/optimum-treasury/optimum-treasury-dao/staking-dao.md).

# Staking DAO

Staking

## What is Staking DAO <a href="#what-is-staking" id="what-is-staking"></a>

**Staking is on the DAO is one of many accrual strategy of Optimum Treasury.** Stakers stake their **OTM** tokens on[ **OPTIMUM.CASH**](https://optimum.cash/) to earn rebase rewards. The rebase rewards come from the proceed from [**bond sales**](/optimum-treasury/optimum-treasury-dao/staking-dao/minting.md), and can vary based on the number of OTM staked in the protocol and the reward rate set by monetary policy. **Staking is a passive, long-term strategy.** The increase in your stake of **OTM** translates into a constantly falling cost basis converging on zero. This means even if the market price of OTM drops below your initial purchase price, given a long enough staking period, the increase in your staked OTM balance should eventually outpace the fall in price.**When you stake, you lock OTM and receive an equal amount of CASH.** Your **CASH** balance rebases up automatically at the end of every epoch. **CASH** is transferable and therefore composable with other DeFi protocols.**When you unstake, you burn CASH and receive an equal amount of OTM tokens.** Unstaking means the user will forfeit the upcoming rebase reward. Note that the forfeited reward is only applicable to the unstaked amount; the remaining staked **OTM** (if any) will continue to receive rebase rewards.
