# What are the benefits and risks of staking?

## Technical Features of Staking

### :money\_with\_wings: **1. Reward Distribution**

Staking protocols distribute network rewards to participants according to smart contract mechanisms. These rewards are generated by the blockchain protocol itself.

### :link: **2. Smart Contract Security**

Staking in **MyTonWallet** utilizes official **TON Liquid Staking** smart contracts, developed by the **TON Core** team with security audits.

### :globe\_with\_meridians: **3. Network Benefits**

By staking TON, you contribute to network security. Staked tokens help maintain blockchain reliability, and stakers receive a portion of network transaction fees as part of the protocol mechanism.

### :superhero: **4.** Governance Participation

Stakers delegate voting rights to validators through **deposits**, participating in **TON's decentralized governance** system where validators represent staker interests.

### :people\_holding\_hands: **5.** Accessibility

The interface allows staking with minimum amounts: 3 TON, 1 MY\*, and 1 USDe. Withdrawal functionality is available according to smart contract terms.

### :fingers\_crossed: **6. Simplicity**

Staking through smart contracts does not require specialized hardware or technical expertise, unlike mining operations.

## **Staking Risks**

### :point\_right: **1. Reduced Liquidity**

Staked tokens are locked in smart contracts and cannot be used for other transactions during the staking period. Withdrawal processing times vary based on smart contract conditions.

### :point\_right: **2. Market Volatility**

Token values can fluctuate significantly, potentially resulting in losses if market prices decline during the staking period.

### :point\_right: **3. Regulatory** Considerations

Regulatory changes may affect staking protocols and conditions. Smart contract-based staking operates according to blockchain protocol rules.

### :point\_right: 4. Smart Contract Risks

While audited, smart contracts may contain unforeseen technical vulnerabilities or behave differently than expected.

> Staking is performed through official TON smart contracts that have been audited. **MyTonWallet** provides the interface and computing resources for staking but does not have access to your funds. Please evaluate potential risks independently before making investment decisions.

> \***MY** token is not intended for acquisition, use, or distribution by residents of the United Arab Emirates. Users located in the UAE should refrain from any activity involving this token.


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