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USST Staking Mechanics

To participate in governance, holders of USST must either:

  • Stake their tokens (regular governance participation)
  • Or time-lock them for a fixed duration to receive sUSST, a boosted version of USST

What’s the difference?

  • USST gives basic governance rights and eligibility for protocol rewards.
  • sUSST gives greater voting power and a higher share of protocol earnings, depending on how long the token is locked.

Time-locking is voluntary, but those who lock USST for longer durations (e.g. 6 months, 1 year) show long-term alignment with the protocol and receive proportionally greater influence and incentives.

This mechanism:

  • Discourages short-term manipulation of votes
  • Encourages deeper engagement from long-term holders
  • Strengthens governance participation by rewarding patience and commitment

Stakers (USST or sUSST) are eligible to receive:

  • A share of protocol fees (from yield, minting, and LAMP)
  • Priority in new vault launches and early access to governance proposals