# Utility SLD is the utility token of the Sealed ecosystem. Its main role is connected to staking, staking rewards, POWER, and optional in-app usage of earned rewards. The token is designed to reward long-term participation. Users who stake SLD can take part in the staking reward system, increase their POWER over time, and receive staking rewards generated by the protocol. ### Staking rewards SLD stakers receive a share of protocol revenue allocated to the staking pool. From the eligible revenue distributed by the protocol, **45% is assigned to stakers**. The staking reward smart contract works in **30-day reward intervals**. At the end of each 30-day interval, the contract calculates how much ALGO was generated for stakers during that period. That amount then becomes available for distribution to eligible stakers according to their staked SLD and POWER. This creates a clear reward cycle instead of irregular payouts. Users who stake SLD can claim their available ALGO rewards after the interval has been calculated. ### POWER multiplier POWER is the multiplier used in Sealed staking. It affects staking rewards. When a user starts staking SLD, their POWER begins at **1x**. Each day, POWER increases by **0.01x**, until it reaches a maximum of **4x**. This means that users gradually build stronger reward weight the longer they stay staked. A user with 1,000 SLD staked at 1x POWER has a lower effective reward weight than a user with 1,000 SLD staked at 4x POWER. In simple terms, POWER rewards time. The longer a user keeps SLD staked without unstaking, the stronger their position becomes in the reward system. ### POWER reset POWER resets when the user unstakes any amount of SLD. Even if the user removes only a small part of their staked tokens, the POWER multiplier returns to its starting point. This rule is designed to discourage short-term staking behavior. Users who constantly enter and exit staking do not keep the same long-term multiplier as users who remain staked continuously. Because POWER affects rewards, resetting it has a real impact on the user’s position in the staking system. ### Reward withdrawal options When a user earns staking rewards, they can choose how to receive or use them. One option is to claim rewards as ALGO to their wallet. This gives the user direct access to the value generated from staking. The alternative option is to use the reward value inside Sealed as credits or subscription access. This option is designed for users who actively use the app and prefer to convert their rewards into communication capacity instead of withdrawing ALGO. ### 10% discount for in-app usage If a user chooses to receive their staking reward value as Sealed credits or subscription access instead of withdrawing ALGO, they receive a **10% discount**. This means the same reward value gives the user more utility inside the Sealed app than it would if they withdrew ALGO and used it separately. The purpose of this discount is to encourage ecosystem circulation. Users who earn rewards can keep value inside Sealed, use the app more efficiently, and connect staking directly with product usage. ### Utility summary SLD utility is built mainly around staking rewards, POWER, and optional in-app use of earned rewards. Users who stake SLD can receive ALGO rewards from protocol revenue in 30-day intervals, grow their POWER over time, and optionally use rewards for Sealed credits or subscriptions with a 10% discount. Staking is the main utility of SLD because it connects tokenholders directly to protocol-generated rewards. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.sealed.channel/sld-token/utility.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.