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# Earn TONIC by staking TONIC
## What is TONIC Staking?
* TONIC staking allows TONIC holders to deposit their tokens into the TONIC staking module in return for yield rewards.
* Here’s the general idea**:** stakeholders receive rewards, including 50% of protocol revenue generated from fees paid by borrowers and liquidations
* TONIC staking drives further utility for the TONIC token, and it seeks to align incentives with the long-term believers of our protocol and benefits token holders.
* Staking is a standalone feature and not the same thing as our [TONIC money market](https://app.tectonic.finance/markets/tonic/).
## How does it work?
1. TONIC token holders can stake TONIC into the staking module and receive xTONIC based on the TONIC : xTONIC exchange rate at the time.
2. Being a yield-bearing token, the TONIC : xTONIC’s exchange rate increases over time, without any action on your part!
3. As a result, when you withdraw your TONIC from the staking module, you will receive more TONIC compared to when you made the initial deposit.
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