# Staking & Governance

Stake CTR to receive xCTR — a non-transferable token that grants voting power over the Citrea Governance Treasury and the Citrea Network.

## How Staking Works

Users stake CTR to receive xCTR, a modified ERC-4626 vault receipt token. xCTR is **non-transferable**. Stakers receive xCTR based on their share of the contract, starting at 1:1 and adjusting as rewards flow in.

| Token    | Description                                          |
| -------- | ---------------------------------------------------- |
| **CTR**  | Base token — transferable, no voting power           |
| **xCTR** | Staked token — non-transferable, grants voting power |

## Unstaking

To convert xCTR back to CTR, you go through an exit process with a **90-day unstaking window** and a variable penalty:

* **Instant exit**: 50% flat penalty
* **Days 15–90**: Penalty decays linearly from 50% down to 0%

| Day     | Penalty | You Receive      |
| ------- | ------- | ---------------- |
| Instant | 50%     | 50% of CTR value |
| 15      | 50%     | 50%              |
| 30      | 40%     | 60%              |
| 45      | 30%     | 70%              |
| 60      | 20%     | 80%              |
| 75      | 10%     | 90%              |
| 90+     | 0%      | 100%             |

Penalties paid by early exiters are distributed pro-rata to remaining stakers. Both the penalty rates and the unstaking period length are governed by xCTR holders and can be changed by governance.

## Governance

### Dual Treasury Model

Citrea separates treasury responsibilities between two entities:

**Citrea Governance Treasury** (controlled by xCTR holders):

* Liquidity incentives
* Council selection and payments
* Infrastructure provider selection and payments

**Citrea Foundation Treasury**:

* R\&D and ecosystem grants
* Operations and strategic initiatives
* Cannot use its treasury for liquidity emissions without Governance approval (with clear goals and KPIs)

### Voting Power

Your voting power equals your xCTR balance. To activate voting, delegate to yourself or another address. Undelegated xCTR has no voting power.

You can delegate your voting power to a trusted address who will vote on your behalf while retaining your xCTR. Delegation can be changed or revoked at any time.


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