Staking
By participating in The Onion Router Staking users earn a portion of 25% of The Onion Router's revenue, distributed daily to the on-chain staking vault. Users can stake their TOR and receive xTOR, representing their portion of the vault.
Following the successful staking migration to the Mainnet, stakers now accrue TOR staking rewards automatically on-chain. TOR rewards are distributed to our staking vault daily at 00:00 UTC.
NOTE: STAKING IS NOT LIVE YET, AND WILL BE INTRODUCED IN Q1-2026
If Alice and Bob both deposit 100 $TOR into empty staking vault. The vault now has 200 $TOR and they each receive 100 xTOR, representing their portion of the vault.
The Onion Router then deposits 200 $TOR in staking rewards to the vault making the total $TOR in the vault 400. Alice and Bob still hold 100 $TOR each but now those shares can be redeemed for 200 $TOR instead of the 100 $TOR they originally put in.
If The Onion Router then deposits another 200 $TOR in staking rewards, there is now 600 $TOR in the vault. Alice and Bob still hold 100 xTOR each but now this amount can be redeemed for 300 $TOR instead of the 100 they originally put in.
As the amount of staking rewards in the vault grows, the portion they hold can claim more $TOR
Auto-Compounding is a feature that is planned to be added aswell. At this stage, we are unsure of the lock-up period of the tokens for the staking vault. This will be confirmed at a later stage.
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