# What is Staking Staking is a secondary value accrual strategy of Dominium. Stakers stake their DOM on the Dominium website to earn rebase rewards. The rebase rewards come from the proceeds from bond sales, and can vary based on the number of DOM staked in the protocol and the reward rate set by monetary policy. Staking is a passive, long-term strategy. The increase in your stake of DOM translates into a constantly falling cost basis converging on zero. This means even if the market price of DOM drops below your initial purchase price, given a long enough staking period, the increase in your staked DOM balance should eventually outpace the fall in price. When you stake, you lock DOM and receive an equal amount of sDOM. Your sDOM balance rebases up automatically at the end of every epoch. sDOM is transferable and therefore composable with other DeFi protocols. When you unstake, you burn sDOM and receive an equal amount of DOM. Unstaking means the user will forfeit the upcoming rebase reward. Note that the forfeited reward is only applicable to the unstaked amount; the remaining staked DOM (if any) will continue to receive rebase rewards. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.dominium.finance/docs/the-basics/what-is-staking.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.