# Staking and Rewards

## A Beginner's Guide

If you're new to Shentu Chain, you might be wondering how you can earn additional CTK tokens by staking. Don't worry; we've got you covered. Here's a beginner's guide to staking and earning rewards on Shentu Chain.

### What is staking?

Staking is a process in which you lock up your CTK tokens to support the network's security and get rewarded for your contribution. By staking your CTK, you delegate your tokens to a validator node to generate blocks that include all approved transactions on the Shentu Chain. In return, you get a share of the block rewards proportional to the amount of CTK you stake.

### How do I stake my CTK ?

You can find out how to stake using Deepwallet on the [Broken link](https://shentu-chain.gitbook.io/shentu-chain/chain/broken-reference "mention") page.\
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To make sure you pick the right Validator to stake to you can check out the [validators](https://shentu-chain.gitbook.io/shentu-chain/chain/validators "mention") page.\
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Want to make get some extra rewards after you staked your CTK. Make sure to check [shentu-shield](https://shentu-chain.gitbook.io/shentu-chain/chain/shentu-shield "mention"). Please read this carefully as this has a risk attached to it.

### How does it work ?

Shentu is using the Delegated Proof of Stake (DPoS) principle, meaning that the CTK has validators that generate the blocks which include all types of approved transactions done on the Shentu Chain.

Shentu Chain runs on voting power which is achieved by the amount of staked CTK. By Staking a CTK holder can delegate CTK to a Validator node to prove their trust in the chain and validator. By doing this the staker will also get a share of the block rewards.

A CTK holder can delegate, redelegate and undelegate freely. However undelegating takes 21 days. During these 21 days no rewards will be provided. After the 21 days have passed the balance will be added to your normal wallet balance.

### How do I earn rewards by staking?

By staking your CTK, you'll earn rewards proportional to the amount of CTK you stake. The staking rewards depend on several factors

The basic calculation to determine the Annual Percentage Yield (APY) is `Inflation% / staked% = APY%`\
However these values take a block time of 5 seconds, does not include the share of the block rewards taken for Shield Collateral Providers and the validator commission.

More explanation about validators : [validators](https://shentu-chain.gitbook.io/shentu-chain/chain/validators "mention")

### Final thoughts

Staking is an essential feature of the Shentu Chain that rewards users for supporting the network's security and growth. By staking your CTK, you can earn additional tokens while contributing to the network's success. With Deepwallet's user-friendly interface, staking has never been easier. So what are you waiting for? Start staking your CTK today and earn rewards!


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