> For the complete documentation index, see [llms.txt](https://shinobi-3.gitbook.io/shinobi-whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://shinobi-3.gitbook.io/shinobi-whitepaper/coti-chain/staking-and-farming.md).
# 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.\
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.\