# Auto-Staking System (X)

### What is the definition of staking?

To incentivize rebasing, AFTERBURNER's primary appreciation mechanism is staking. Rebase rewards come from revenue generated by the protocol's transaction taxes (fees) and other various yield-generating features.

**Staking is a long-term, passive strategy**. As your interest in $ARB grows, your cost-entry base will decrease until it reaches zero. This means that even if the market price of $ARB has had enough time to fall below your initial purchase price, the increase in your $ARB amount (thanks to the rebasing) is expected to outweigh the price decrease.

### How does Auto-Staking work?

\
\&#xNAN;***By simply buying $ARB and holding the tokens in your wallet, you earn rebase rewards automatically in your wallet. Your tokens will compound every 15 minutes.***

*<mark style="color:green;">**Using a Positive Rebase formula, AFTERBURNER makes it possible for users to accumulate daily rebase rewards, worth 1.28% of the total amount of tokens a $ARB token held in your wallet.**</mark>*&#x20;

The rebase rewards are distributed on each epoch (rebase period) to all $ARB holders.&#x20;

*<mark style="color:blue;">**This means that without moving their tokens from their wallet, AFTERBURNER holders receive an annual compound interest of 10,100.00%.**</mark>*


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