# Staking Rewards

### BaseFi Staking Rewards:

30% of the maximum supply is allocated for BaseFi staking rewards.

The maximum daily rewards are calculated as 1/170th of the remaining allocation. This approach gradually reduces staking emissions to ensure stability as the market cap grows.

To incentivize longer lockups, 70% of the maximum daily rewards are evenly distributed among tokens locked for 6 months, while the remaining 30% are for tokens locked for 30 days.

Early unstaking incurs a 30% penalty, with the forfeited tokens returned to the BaseFi staking rewards pool.

### Community Staking Pools:

Community staking pools offer rewards in $BASEFI for staking other popular Base coins, fostering community growth. These pools allow flexible unstaking but with lower Annual Percentage Rate (APR).

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We’ll conduct DAO votes to decide which coins we’ll accept for staking. Each chosen coin will have 2% of the BaseFi supply allocated to its staking pool, distributed over a 6 months period among all tokens staked in that pool.