ElementStaking
The $ELEMENT token, staking it for a share of protocol fees paid in USDG, and how every trading fee is distributed.
The $ELEMENT token
$ELEMENT is Element's protocol token. It has a fixed supply of 1,000,000,000 with 18 decimals, and no emissions or inflation: the entire supply already exists, and the protocol never mints more.
Its function is staking. You stake $ELEMENT to earn a share of the fees traders pay on Element, paid to you in USDG. The token itself trades permissionlessly on-chain.
$ELEMENT is used for staking. It is not a share, a claim on the protocol, or an investment, and it confers no ownership or governance rights. Its live address is listed on the Contracts page.
Staking for a fee share
Staking $ELEMENT earns you a share of the trading fees Element collects, paid in USDG. Rewards accrue continuously while your stake is locked, and you can claim them at any time. Claiming is separate from unstaking, so you never have to unlock your $ELEMENT to collect what you have earned.
Your share of each distribution is proportional to your weighted stake, described below, rather than the raw amount you stake. Because rewards are drawn from actual trading activity, they rise and fall with volume; they are not a fixed rate, an APY, or a guaranteed return.
Lock tiers and weighted stake
When you stake, you choose a lock period. A longer lock carries a higher reward multiplier, so it earns a proportionally larger share of the same fee pool. Your weighted stake is your staked amount multiplied by your tier's multiplier.
| Lock period | Reward multiplier |
|---|---|
| 7 days | 2x |
| 90 days | 10x |
| 180 days | 50x |
weighted stake = staked amount x tier multiplier
reward share = your weighted stake / total weighted stakeStaking mechanics
- You can move to an equal or longer lock, but never to a shorter one
- Adding to your stake never shortens your existing lock
- Unstaking is blocked until your lock expires; after it expires, you can withdraw your $ELEMENT in full
- Claiming your USDG rewards is separate from unstaking and available at any time
- Your live staked balance, weighted stake, and pending rewards are shown in the staking app
The staking contract has no owner function that can move staked $ELEMENT or accrued USDG. Your stake and your rewards can be withdrawn only by you.
How trading fees are distributed
Every position pays a trading fee to open and to close, and that fee is distributed across three destinations. The shares below are the current on-chain configuration and can be adjusted by the protocol operator.
| Destination | Share | What it funds |
|---|---|---|
| Liquidity vault | 20% | Added to the vault's net asset value, earned by liquidity providers |
| $ELEMENT stakers | 40% | Paid to stakers in USDG, in proportion to weighted stake |
| Treasury | 40% | Funds protocol operations |
The trade fee itself, 0.10% of notional or 0.05% when you reduce open-interest imbalance, is detailed on Fees & costs. The vault's share and how liquidity providers earn it are covered on Providing liquidity.