# RFARM: Staking & Farming

We strongly recommend $REWARD holders to take advantage of the platform's staking and farming feature and enjoy variable APY. Initial APY will be higher due to low number of staked tokens but as more people stake their tokens, it may decrease. So, first stakers would advantage from higher APYs than the later investors.&#x20;

Reward Tax platform has implemented a strategy to reward long term stakers and have a fee on premature unstaking. This would help us to stabilise staking & farming rewards. By default, there is 2% tax on stake and this is automatically burnt. Also, below are premature withdrawal fee:

* 25% flat fee if unstaked within 7 days&#x20;
* 12.5% flat fee if unstaked within 14 days&#x20;
* 6.5% flat fee if unstaked within 21 days

**Premature withdrawal fee breakdown:**

Since we have time-based premature withdrawal fee, the fee distribution is based on %. ***30% of the fee will be burnt forever, 30% of the fee will be redistributed to $REWARD holders, and 40% of the fee will be added to staking reward pool*** which means even higher APY for long term stakers.


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