# Staking

**Staking is the primary value accrual strategy of Traverse.** Stakers stake their **VERSE** tokens on the Traverse Website to earn rebase rewards. The rebase rewards come from the proceed from bond sales, and can vary based on the number of **VERSE** 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 **VERSE** translates into a constantly falling cost basis converging on zero. This means even if the market price of **VERSE** drops below your initial purchase price, given a long enough staking period, the increase in your staked **VERSE** balance should eventually outpace the fall in price.

**When you stake, you lock VERSE and receive an equal amount of sVERSE .** Your **sVERSE** balance rebases up automatically at the end of every epoch. **sVERSE** is transferable and therefore composable with other DeFi protocols.

**When you unstake, you burn sVERSE and receive an equal amount of VERSE tokens.** 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 **VERSE** (if any) will continue to receive rebase rewards.


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