> For the complete documentation index, see [llms.txt](https://docs.hydraswap.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.hydraswap.xyz/white-paper/hydra-swap-whitepaper-1.0/hydra-token/staking-program-1.md).

# Staking Program

#### How the Staking Program Works

**1. Rewards Allocation** Rewards are distributed to staking participants in proportion to their share of the staking pool. This means that the more $HDRA a participant stakes, the larger their share of the rewards pool. The funds for these rewards come from fees earned by Hydra Swap, which are used to buy back $HDRA tokens on the market.

**2. Smooth Distribution Sequence** To ensure fairness and consistency, $HDRA rewards are distributed over a 14-day period using a per-second ‘dripping’ mechanism.

* Every other Monday at 10:00 UTC, the staking smart contract consolidates all $HDRA accumulated from the previous two week into the staking distribution pool.
* These rewards are then evenly distributed to participants over the following 14 days, ensuring a steady flow of rewards.

**3. Real-Time APY Calculation** The Annual Percentage Yield (APY) is calculated in real-time to reflect the current performance of the staking pool. For user convenience, the APY value is refreshed on the staking dashboard every 30 seconds, providing an up-to-date view of potential returns.

**Additional Context**

* **Buybacks and Token Flow**: Hydra Swap uses an integrated bot to buy back $HDRA-SOL on Solana in small, continuous quantities. 
* **Source of Rewards**: The staking program is funded entirely by fees Hydra Swap earns from its exchange partners.