# Staking and Farming:

Reward Sustainability SHINOBI’s staking and farming rewards are designed for long-term stability, not short-term inflation.

Funding Sources

1. Protocol Revenue (Primary)
   * 0.4% of DEX volume is allocated to the Rewards Pool.
   * This ties rewards directly to real protocol usage.
2. Treasury Bootstrap (Early Phase)
   * A capped Treasury Boost can be used to support early adoption.
   * Maximum: 0.25% of total supply per month (2,500,000 SHO).
   * This allocation comes from the pre‑designated rewards supply, not inflation.

Protections

* Hard daily and monthly reward caps.
* Time‑weighted rewards favor long‑term commitments.
* Dynamic emissions scale down if protocol revenue declines.
* Governance oversight with transparent on‑chain reporting.\ <br>

  <figure><img src="/files/YJWLKAFG2sxnfQMr5kgx" alt=""><figcaption></figcaption></figure>

<br>

The Village (Long-Term Alignment Program) SHINOBI introduces the Village, a long-term alignment system designed to reward commitment and strengthen protocol stability.

How It Works

* Users lock SHO or COTI for 12 months.
* A small entry fee (e.g., 0.5%) supports the Treasury.
* Members earn slow, sustainable rewards and gain protocol boosts.

Member Benefits

1. Reward Boost
   * Staking and farming rewards receive a multiplier (e.g., 1.1×–1.3×).
2. Governance Boost
   * Increased voting power for long-term participants.
3. Eligibility Access
   * Priority access to future ecosystem modules and partner perks.

Sustainability Controls

* Rewards are capped and revenue-backed.
* Boosts apply only to active staking or farming participation.
* Early exit penalties return value to the protocol.\ <br>

  <figure><img src="/files/ScLI2fUZlzjRiLrOwZos" alt=""><figcaption></figcaption></figure>


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