> For the complete documentation index, see [llms.txt](https://kimberlite-token.gitbook.io/kimbertoken/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kimberlite-token.gitbook.io/kimbertoken/token-economy/staking-explained.md).

# Staking Explained

Staking KimberLite Token gives holders two main benefits:

* Higher cashback rates on eDiamond and eCarat purchases
* Token rewards from the Community Rewards Pool, paid in $KIMBER

**Staking Power (SP)** determines a users share of Community Rewards and benefits. It is calculated with this simple formula:

**SP = T × M**

* T = Number of tokens you lock in the staking contract
* M = Duration multiplier based on your chosen lock-up period

***

### Duration Multipliers (Lock-up Periods)

Longer lock-ups give higher multipliers, rewarding commitment.

<figure><img src="https://content.gitbook.com/content/ZnKO3fwtQPOpV6sX3vpT/blobs/N0GLjg2BjE1OLpm5ordo/Staking-Multiplier-Table-June-2026.webp" alt=""><figcaption><p><strong>Staking Multipliers</strong> — Higher rewards for longer lock-up periods</p></figcaption></figure>

**Example calculation:**

If a users stakes **50,000 $KIMBER** for 12 months (M = 1.5):

**SP = 50,000 × 1.5 = 75,000**

Higher Staking Power (SP) allows Stakers to qualify for superior Community Rewards tiers and increased cashback rates.

***

### Staking Levels & Benefits

All Stakers start with a **base multiplier of 1** — every staked token counts equally for basic rewards.

* Any amount earns **pro-rata $KIMBER** rewards (even small stakes).
* **Level 2 and above** unlocks higher cashback rates and additional reward multipliers.

Staking Levels are tiered according to Staking Power and unlock progressively stronger rewards and benefits.

<figure><img src="https://content.gitbook.com/content/ZnKO3fwtQPOpV6sX3vpT/blobs/PUgD6vhcjSLUnVDLl8du/Staking-Benefits-Table-June-2026.webp" alt=""><figcaption><p><strong>Staking Benefits</strong> — Increased cashback rates and larger Community Rewards based on your Staking Power</p></figcaption></figure>

The table shows the different staking levels with the following details:

* **Staking Power:** The minimum amount of tokens you need to stake to reach that level.
* **Benefits:** The extra rewards and perks you receive at each level.
* **% of Total Supply:** The percentage of the total token supply required to reach the level. This percentage already accounts for the average staking multiplier.

#### **Real-world examples:**

* **User A** stakes 10,000 $KIMBER for 6 months, generating **SP = 10,000 (Level 0)** → earning basic Community Rewards.
* **User B** stakes 10,000 $KIMBER for 24 months, generating **SP = 20,000 (Level 1)** → receiving basic Community Rewards plus an increased cashback rate of 3.5%.
* **User C** stakes 300,000 $KIMBER for 12 months, generating **SP = 450,000 (Level 2)** → qualifying for 5% cashback along with a 1.2× multiplier on $KIMBER rewards.
* **User D** stakes 200,000 $KIMBER for 36 months, generating **SP = 600,000 (Level 3)** → benefiting from significantly enhanced Community Rewards (1.5× multiplier) and 7.5% cashback.

***

### Additional Rules

* The **minimum lock period** is **6 months**.
* Tokens from early sales or partnerships that are still **vesting** can be staked and receive full benefits.
* Higher Staking Power directly leads to greater benefits and a larger share of the Community Rewards Pool.

{% hint style="success" %}
Tokens from early sale rounds and partnerships that are still vesting can be staked. Once staked, these tokens receive the same staking benefits as freely circulating tokens.
{% endhint %}

Full details on reward distribution are available in the [Community Rewards section](/kimbertoken/token-economy/community-rewards.md).