# Staking Rewards

Staking rewards are the distributions allocated to $KARUM stakers.

They are not passive emissions: rewards depend on **active contribution**.

Each distribution period, a portion of the token supply is set aside as a **reward pool**.

This pool is distributed to wallets based on three factors:

* **Activity**: the essential input. Only wallets with verified activity are eligible for rewards.
* **Rank**: determined by the amount staked, sets a baseline multiplier.
* **Duration**: determined by how long tokens have been staked, adds a loyalty multiplier.

The combination of these factors ensures that rewards are:

* **Active**: no activity means no rewards.
* **Balanced**: capital, loyalty, and contribution all matter.
* **Flexible**: Activity definitions evolve over time, but Rank + Duration remain the backbone.

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Learn more in the subpages:

* [Principles](https://karum.gitbook.io/docs/usdkarum-token/staking-for-users/staking-rewards/principles) — why rewards are structured this way.
* [Activity](https://karum.gitbook.io/docs/usdkarum-token/staking-for-users/staking-rewards/activity) — how Activity is defined in campaigns today and in product usage tomorrow.
* [Staking Rewards Formula](https://karum.gitbook.io/docs/usdkarum-token/staking-for-users/staking-rewards/staking-rewards-formula) — the formula used to calculate payouts.