# Tree Staking Program

The Tree Staking Program allows users to activate their NFTrees by locking $SEED tokens into virtual land plots. This mechanism rewards long-term commitment with real-world carbon debits, while simultaneously reducing the circulating supply of $SEED.

Unlike traditional staking models, Tree Staking does not yield $SEED token rewards. Instead, participants receive $aCO₂ tokens, which represent verified carbon absorption tied to real agroforestry systems.

**How it works:**

* NFTrees are assigned to virtual land plots.
* For each tree, users lock $5 worth of $SEED tokens into the plot.
* These tokens remain locked while tree staking is active and can be unstaked later, minus a burn fee.
* In return, users receive $aCO₂ tokens on a recurring basis. The reward rate depends on the selected plot type and participation ratio in the overall staking pool.<br>

### Plot Types

Sproutly offers three plot types, each with different staking capacity and reward multipliers:

**Standard Plot (Unlimited supply)**

* Maximum 15 NFTrees per plot
* $aCO₂ generation rate: +80%
* Receives 20% of the Unstaked Tree Bonus Pool<br>

**Rare Plot (Limited to 7,500 plots)**

* Maximum 30 NFTrees per plot
* $aCO₂ generation rate: +90%
* Receives 30% of the Unstaked Tree Bonus Pool<br>

**Genesis Plot (Limited to 1,500 plots)**

* Maximum 50 NFTrees per plot
* $aCO₂ generation rate: +100%
* Receives 50% of the Unstaked Tree Bonus Pool
* Designed for the highest long-term return

### Unstaked Tree Bonus Pool

Sproutly plants two agroforestry systems for each NFTree, whether it is staked or not. To ensure staking participants are fairly rewarded, all $aCO₂ generated by non-staked NFTrees is collected into a shared bonus pool.

This bonus pool is divided as follows:

* 50% allocated to stakeholders using Genesis plots
* 30% to stakeholders using Rare plots
* 20% to stakeholders using Standard plots

Within each category, the bonus is proportionally distributed based on the number of NFTrees actively staked on that plot type.

### **Caps and fairness logic**

To ensure lower-tier plots do not earn disproportionately from higher-tier bonuses, hard caps are applied:

* Rare plots can never receive more than 75% of what Genesis plot stakers earn from the bonus pool
* Standard plots can never receive more than 75% of what Rare plot stakers earn from the bonus pool

This protects the ecosystem’s economic integrity and maintains appropriate reward stratification across plot types.

### Unstaking & Fee Structure

When users unstake their NFTrees, the $SEED tokens are returned minus a one-time fee. This fee is 100% burned, reinforcing deflationary tokenomics.

Fee schedule:

* Staked < 1 year → 5% fee
* Staked < 2 years → 3% fee
* Staked ≥ 2 years → 1% fee