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

# Staking & Rewards

Staking rewards are compiled by the tax shown within the contract, with 5% of all taxes going to rewards, the way the rewards work are as followed:

**When you claim, the contract actually does the following**

* When somebody purchases/sells $COQBOX 5% of the tax go into the staking fund, the staking fund is then distributed on the buy/sell transaction call to every staker within the pool
* Your initial staking rewards are in $COQBOX until you claim the tokens, It buys $COQ with your staking rewards collected in $COQBOX for its $USDC value shown in the dApp.
* When $COQBOX price drops its $USDC value gets less. So there's less $USDC value to buy $COQ for your rewards. 
* Additionally when $COQ goes up you'll get also less $COQ because you need more $USDC value to buy.
* If $COQBOX price goes up, you receive more $COQ on your claim.
* Your rewards may vary which is shown on the dApp depending on the slippage used when the claim function is activated.
* You're not losing any rewards if your $COQ amount decreases, it's just the conversion rate.

{% hint style="info" %}
Sometimes your $COQ rewards may be lower, but if you check your $COQBOX amount build up, this would have gone up - This is based on the fact that initial rewards are built up in $COQBOX and then later switched to $COQ when the claim function is called - In the dApp (<https://www.coqinabox.xyz/staking>) the $COQBOX amount in the bottom right of the dApp will show your rewards piling up, this is the number you need to track - If concerned about the price changing, you can claim your rewards every 24h to avoid price changes, the number you should be following is shown below:
{% endhint %}

<figure><img src="https://641005924-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FkmZxqF6dPr3lWn5tMISI%2Fuploads%2FHMHCXKvuDuzErdEWriB9%2FScreenshot%202024-02-24%20at%2014.40.54.png?alt=media&amp;token=ed8c90c5-832f-4e6c-9603-a312cc7d7480" alt=""><figcaption></figcaption></figure>