> For the complete documentation index, see [llms.txt](https://docs.nectarliquid.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.nectarliquid.com/tokenomics/rewards.md). # Rewards Staking NECTAR earns you a share of protocol fees. 27 percent of fees from leverage trading, liquidations, borrowing fees, and swaps are used to buy back NECTAR on the open market through a mechanism approved by the DAO vote. Staking also grants voting power in protocol governance. You can stake and manage rewards on the Earn page. For more on the NECTAR token, see the NECTAR token page. Note: NECTAR staking rewards are accumulating in the Treasury. Bought back NECTAR will be distributed to stakers when NECTAR reaches its target price milestone. Your share of accumulated rewards is based on staking power. The APR display on the Earn page shows "Accumulating" while distribution is suspended. #### Staking Power Staking power determines the share each staker receives from accumulated Treasury rewards. It accrues continuously based on the amount staked and the duration of staking. Your current staking power is shown on the NECTAR asset card on the Earn page. You can also query staking power data programmatically through the Nectar Liquid API or GraphQL. #### How Power Accrues The system computes staking power as a continuous time weighted integral of your staked balance which includes both NECTAR and esNECTAR. Power accrues every second rather than through periodic snapshots. On each stake or unstake event, the system updates your accumulated power by multiplying the current balance by the time elapsed since the last update. A user who stakes 1,000 NECTAR for 90 days without changes accumulates power equal to 1,000 multiplied by 90 days of staking. Your share of Treasury rewards equals your cumulative power divided by the total network power across all stakers. Power accrual began on March 4, 2026, when the last bought back NECTAR reward distribution ended. #### Loyalty Threshold A loyalty system protects against large unstaking events. Loyalty tracking started on March 25, 2026, at which point the system began tracking the peak staked balance of each address. If the staked balance drops below 80 percent of this peak, all accumulated power resets to zero. The historical peak of the address is then reset to its new staked balance, and power begins accruing again from zero from that point. Key details include the following rules. * After a reset, previous accumulation is lost and is not restored. This means the address loses the previously accumulated share of the Treasury distribution and starts rebuilding from zero. * Forfeited power is removed from the total network power. Because the share of each staker equals their own power divided by the total, reducing the total automatically increases every remaining staker share proportionally without a separate redistribution step. * After a reset, the current balance of the address becomes its new historical peak. * Staking additional tokens raises the historical peak and the 80 percent threshold accordingly. * Unstaking esNECTAR to deposit it into a vesting vault lowers the tracked staked balance. If that drop puts the address below 80 percent of its historical peak, accumulated power resets to zero. * Staking power and loyalty tracking are independent per address so accumulated power and historical peak do not carry across wallets. * Vesting completion where esNECTAR converts to NECTAR within a single transaction does not trigger false resets. #### Escrowed NECTAR Escrowed NECTAR or esNECTAR is a non transferable token that was historically awarded as an incentive for NECTAR staking, legacy liquidity provision, referrals, and other programs. Stakers now receive NECTAR directly through the buyback mechanism rather than esNECTAR. Existing esNECTAR can be used in two ways. * Staked for staking power where each staked esNECTAR token contributes to staking power the same way as a staked NECTAR token. * Vested to become NECTAR tokens over a period of one year or 365 days. esNECTAR is not transferrable unless you are doing a full account transfer. The amount of NECTAR or legacy liquidity tokens required to vest esNECTAR is unique per account, and the maximum amount of esNECTAR that can be vested is capped to the esNECTAR rewards received by that account. Note: The legacy liquidity token preceded the current Nectarliquid pools. While legacy tokens are no longer available for new minting, vesting vaults remain active for users with existing esNECTAR earned through previous liquidity staking. #### Vesting Escrowed NECTAR tokens can be converted into NECTAR tokens through vesting on the Earn page. There are two separate vesting vaults which include one for esNECTAR earned from NECTAR staking and one for esNECTAR earned from legacy liquidity staking. Each vault tracks its own balances, reserved tokens, and vesting progress independently. The Earn page displays both vaults as separate cards so you can see the breakdown of your esNECTAR by source. When vesting is initiated, the average amount of NECTAR or liquidity tokens used to earn the esNECTAR rewards is reserved. For example, if you staked 1,000 NECTAR and earned 100 esNECTAR tokens, then to vest 100 esNECTAR tokens, 1,000 NECTAR tokens are reserved. To vest 50 esNECTAR, 500 NECTAR tokens are reserved. The actual ratio depends on the average staked amount and rewards earned for your account. Key details include the following rules. * esNECTAR tokens that have been unstaked and deposited for vesting stop counting toward staking power. Staked NECTAR or esNECTAR tokens that are reserved for vesting remain in the staked balance and continue to count toward staking power and the Treasury distribution. * If you unstake esNECTAR to start vesting it, those unstaked tokens stop counting toward staking power. If that drop puts the address below 80 percent of its historical peak staked balance, accumulated power resets to zero. * After initiating vesting, esNECTAR tokens are converted into NECTAR every second and fully vest over 365 days. Vested NECTAR tokens are claimable at any time. * If you sell NECTAR or liquidity tokens and want to vest your esNECTAR rewards later, you need to re buy the NECTAR or liquidity tokens. * NECTAR and esNECTAR can be used interchangeably for the required reserve amount. * Depositing into the vesting vault while existing vesting is ongoing is supported. #### Withdrawing from vesting Tokens reserved for vesting cannot be unstaked or sold. To unreserve them, use the Withdraw button on the Earn page. Partial withdrawals are not supported because withdrawing unreserves all tokens and pauses vesting. Any esNECTAR tokens that had already vested into NECTAR remain as NECTAR tokens. #### Next steps * NECTAR token: Token addresses, supply, and staking details. * Voting power: Participate in protocol governance. * Earn page: Stake NECTAR and manage rewards. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. 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