# Stake and Earn

**Staking of tokens refers to storing your tokens for a long duration of time and withdrawing it when the yield for the tokens is at its highest.**

Staking means holding or keeping. You hold a certain number of tokens annually and wait for it to yield. Yield, in simple terms, is interest added to the token every year. A certain percentage of yield is added to the ‘kept’ token which increase its value. Let us take the example of fixed deposit account in a bank. You have deposited 5,000 dollars in this account and will withdraw it five years later. You know that there will be a certain percentage of interest added every year to the 5,000 dollars. At the end of the term, the amount has increased from 5,000 dollars to 15,000 dollars. The additional 10,000 dollars is the interest.

Similarly, when you stake or hold the tokens you are storing them for the tokens to yield. The number of tokens that can be staked should be equal to 3 million or 6 million or 12 million.
