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

# Social Staking

<figure><img src="/files/avCe8mFbHqYlIoCY4RFd" alt=""><figcaption><p>Figure - Social Staking</p></figcaption></figure>

The Social Staking model in League of Traders combines the traditional **Proof of Stake (PoS)** framework with a novel **Proof of Community (PoC)** approach to reward both individual token commitment and community-level engagement.

Participants lock LOT tokens to obtain Mining Power (MP), which determines their reward eligibility. Staking rewards are distributed from a fixed mining pool, allocated as follows: 40% to PoS and 60% to PoC. Both pools follow a declining emission schedule, releasing 91% of total rewards over six years according to the following decay model:

* Year 1: ⅓ of the total allocation
* Year 2: (⅓) × (⅔)
* Year 3: (⅓) × (⅔)²
* Continuing exponentially in subsequent years

Under the PoS model, rewards are proportional to the amount and duration of the user’s token lock-up. The PoC model, on the other hand, distributes rewards to the top 12 communities based on their collective voting power, which reflects user activity, leadership, and participation.

A distinctive advantage of the PoC system is that members of the same community can view each other’s portfolios and share trading strategies in a transparent and collaborative environment. This promotes peer-to-peer learning, trust, and collective performance improvement.

Social Staking is designed not only to incentivize financial participation, but also to cultivate engaged, knowledge-sharing communities—laying the foundation for long-term sustainability and growth within the League of Traders ecosystem.