> For the complete documentation index, see [llms.txt](https://stag.gitbook.io/stag-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://stag.gitbook.io/stag-docs/earn-real-eth/how-rewards-work.md).

# How Rewards Work

$STAG pays you in **real ETH** — not inflationary "reward tokens." Here's how, in plain English.

## Where does the reward ETH come from?

The project's own **revenue** funds it. Specifically:

* Every **Hooded 20 NFT mint** sends **90%** straight into the **reward pool**.
* Every **Sherwood Saints mint** sends **30%** into a reward pool (and **60% burns $STAG**).

That ETH then **streams** to everyone who's staked.

## What is "streaming"?

Think of the reward pool as a **tank of ETH with a tap**. When the tap is on, ETH drips out continuously to everyone staked, split by their **weight** (how much they've staked and their multipliers). You accrue rewards **every second** — and you **claim** whenever you want.

* ✅ **You don't have to do anything to keep earning** — once you're staked and the tap is on, it just adds up.
* 🖐️ You just tap **Claim** when you want to collect what's built up.

## "Weight" — why some people earn more

Your share of the stream = **your weight ÷ everyone's total weight**. You build weight by:

* Staking **more $STAG**.
* **Locking longer** (30/60/90-day locks boost you).
* **Holding NFTs** (Hooded 20 / Saints multiply your yield).
* Holding a **bigger $STAG balance** (holding-tier multipliers).

Stack them all for the biggest share.

## Important: the tap can run dry

A reward "stream" is funded for a set period. When the tank empties, earning pauses until it's **refilled**. Good news: the main **Stag Staking** pool **refills itself automatically** from new mint revenue. So as long as people keep minting, the tap keeps flowing.

## The two reward pools

| Pool               | Who earns                         | Funding                                |
| ------------------ | --------------------------------- | -------------------------------------- |
| **Stag Staking**   | $STAG stakers + Hooded 20 stakers | Auto — 90% of Hooded 20 mints          |
| **Sherwood Vault** | NFT stakers (Saints, WANTED)      | Funded by the team + Saints mint share |

Next: [how to actually stake](/stag-docs/earn-real-eth/staking.md).


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