Staking $KARMA

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Is there an APY?

No. Staking $KARMA does not pay a percentage yield. We do not run a staking program that mints or emits rewards. Instead, staking unlocks product benefits inside the app: a higher Karma Points (KP) earn rate on every card purchase, and progressively reduced fees. The more you stake, the better your rate stays — your $KARMA keeps working as long as it is staked.

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Why no APY?

Yield-bearing staking would require either token emissions (which dilute holders) or guaranteed payouts from treasury (which create regulatory exposure in many jurisdictions). We chose the simpler, more sustainable path:

• Stakers get utility, not yield. Lower fees on swaps, higher KP multipliers on card spend.
• The treasury keeps its 50% fee accrual in $KARMA. That mechanic — not emissions — is what aligns long-term holders with the platform.
• You can unstake at any time (subject to a 7-day cooldown — see below).

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Tiers and benefits

There are three staking tiers. Each tier is unlocked by reaching a minimum staked amount. Benefits stack with your existing rewards tier (Seed / Rising / Elite / Black), which is determined separately by your KP balance.

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What the multiplier applies to

The multiplier scales Karma Points earned on card purchases. KP convert into cashback at your rewards tier:

• Seed: 5% cashback baseline
• Rising: 10%
• Elite: 15%
• Black: 25%

So a 2× boost on a Rising-tier user effectively doubles the KP rate on each swipe — accelerating progression to the next rewards tier and increasing the cashback flowing back to you.

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What the fee discount applies to

The fee discount applies to in-app swap fees (token swaps inside Karma). Network gas fees, ramp fees, and external partner fees are unaffected.

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How to stake

1. Open the Profile tab in the Karma app.
2. Tap your $KARMA balance** in the staked section, or go to **Stake$KARMA from the rewards screen.
3. Enter the amount you want to stake and confirm.

Your staked balance shows up immediately under “Staked” on the Profile tab.

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Unstaking

Unstaking has a 7-day cooldown before tokens are returned to your wallet. You can initiate an unstake at any time from the rewards screen.

• During the cooldown your tokens still count as staked for tier purposes — you keep your boosts until the window ends.
• Once the cooldown completes, the tokens unlock and your staking tier recalculates based on your remaining staked balance.
• The cooldown exists to prevent gaming tier benefits with short-term deposits and to keep the staking pool stable.

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What staking is not

To set expectations clearly:

• Not a yield product. No APY, no emissions, no rev-share distributions to stakers.
• Not custodial lending. Your $KARMA is not lent out to third parties.
• Not a lockup beyond cooldown. You can exit any time; the 7-day window is the only constraint.
• Not required. All Karma features work without staking — staking only enhances them.

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Roadmap

We may add additional benefits to staking tiers over time (e.g., higher card limits, early access to features, governance signaling). Anything material will be announced before activation in the changelog and on @karmawallet.