> For the complete documentation index, see [llms.txt](https://docs.sportmagic.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.sportmagic.org/about-fortuna-frt/staking-and-rewards.md).

# Staking and Rewards

SportMagic’s **reward mechanisms** are carefully designed to incentivize user participation and **maintain a robust, self-sustaining** decentralized betting ecosystem. From **staking** to **buy-back strategies**, each component contributes to **long-term value appreciation** and **community-driven governance**.

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**1. Staking**

* **Mechanism**:\
  Users stake their **Fortuna Tokens (FRT)** in **on-chain contracts**, temporarily removing those tokens from circulation.
* **Rewards**:\
  Stakers receive **a share of platform revenues**—which may include fees collected from custom betting markets—and additional FRT **based on the amount staked** and **the selected lock-up period**.
* **Lock-Up Periods**:\
  Multiple staking options are available, **each with distinct durations and reward rates**. Longer lock-ups generally grant higher returns, balancing **immediate liquidity** versus **long-term gains**.

**Rationale**: This mechanism encourages **token retention** and **network stability**, aligning user interests with SportMagic’s ongoing growth and innovation.

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**2. Farming**

* **Mechanism**:\
  Users provide **liquidity** in the form of supported cryptocurrencies (e.g., ETH, USDC, USDT, MATIC) to SportMagic’s **decentralized pools**.
* **Rewards**:\
  Liquidity providers are granted **FRT** proportional to their **contribution**, ensuring those who **bolster market liquidity** receive tangible benefits.
* **Supported Tokens**:\
  By accepting **multiple high-volume assets**, the platform broadens its **liquidity base**, improving user experience for custom betting contracts.

**Rationale**: Farming **stabilizes liquidity** for user-generated markets and fosters an **active, diverse** environment, ultimately reducing slippage and enhancing the **overall user experience**.

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**3. Buy-Back Mechanism**

* **Mechanism**:\
  A designated portion of **platform earnings** is used to **repurchase FRT** on the open market.
* **Effect**:\
  Repurchased tokens are **burned**, decreasing total supply over time and **potentially enhancing long-term token value**.

**Rationale**: This **deflationary measure** sustains token health and **reward potential**, reinforcing investor confidence and contributing to **price stability**.

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**4. Betting Incentives**

* **Mechanism**:\
  Users who engage in **custom betting activities**—whether by **creating** new contracts or **participating** in existing ones—earn additional FRT.
* **Distribution**:\
  Incentives are **scaled to user engagement**, reflecting factors such as betting volume, contract complexity, and participant retention.

**Rationale**: By rewarding **active market creation** and participation, SportMagic cultivates a **dynamic user community**, driving organic expansion and **innovative betting models** across the platform.

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Together, these **Staking and Rewards** features shape a **highly collaborative ecosystem**, where **liquidity provision**, **long-term token holding**, and **inventive betting frameworks** intersect. This integrated approach ensures that both **network security** and **user engagement** remain at the forefront, reinforcing SportMagic’s **sustainable growth** and **decentralized governance** principles.