> For the complete documentation index, see [llms.txt](https://arcafinance.gitbook.io/arcafinance-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://arcafinance.gitbook.io/arcafinance-docs/tokenomics/usdarca-tokenomics/arca-staking.md).

# Arca Staking

## *Mechanics*

*The staking ARCA system provides a direct mechanism for users to earn governance rights and boost rewards. The vault contract stakes $ARCA.*

*Staking Parameters:*

* *Minimum duration: 1 week*
* *Maximum duration: 4 years*

***

## *Benefits*

*ARCA stakers provides stakeholders with multiple advantages:*

### *Voting Power:*

* *Voting power on the $METRO and $SHADOW emissions to pools from both exchanges' voting mechanisms*
* *Determine ARCA parameters and reward allocations*
* *Influence key decisions across both Metropolis and Shadow ecosystems*
* *Voting power ratio starts at 1% for one week stake and then increase proportionally to Locking Duration*
  * *(Weekly sommation, you can always just vote for one week. Each week increment that you stake increase you rewards boost up to a max of 5% at 0.096% Increment / week for a maximum of 52 weeks. After that 52weeks or 5% its cap. 0.096% Increment / week to a maximum of 5% at 52 weeks.*
  * *RewardBoost = 1-5%*
* *RewardBoost Multiplier proportional to the amount of staked token a user have.*
  * *User have 100% of the staked Arca in the Contract :*
    * *RewardBoost Multiplier = ((userStaked Amount / Total Arca staked amount) +1) = (100/100) +1 = 2 multiplier to RewardBoost (%)*
  * *User have 5% of the staked Arca in the Contract :*
    * *RewardBoost Multiplier = = ((userStaked Amount / Total Arca staked amount) +1) = (5/100) +1 = 1.05 multiplier to RewardBoost (%)*

### *Reward Boosting:*

* *Current Penalty = (Base Penalty – (RewardBoost\*Multiplier) ) × (Time Remaining / Total Lock Time)*

*USDC Payouts:*

* *Receive share of trading fees from both Metropolis and Shadow exchanges*
* *Bi-Weekly distributions based on staked $ARCA balance*