# Earn TONIC by staking TONIC

## What is TONIC Staking? <a href="#id-2519" id="id-2519"></a>

* TONIC staking allows TONIC holders to deposit their tokens into the TONIC staking module in return for yield rewards.
* Here’s the general ide&#x61;**:** 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? <a href="#id-337b" id="id-337b"></a>

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.