> For the complete documentation index, see [llms.txt](https://wiki.krown.network/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://wiki.krown.network/staking-rewards-and-slashing-penalties/staking-rewards-without-minting-new-tokens.md).

# Staking Rewards Without Minting New Tokens

In the **Krown Blockchain**, staking rewards will be distributed without minting additional tokens. Instead, the rewards for staking come from a portion of the **transaction fees** generated on the network. This ensures that the total supply of **100 billion KROWN** remains fixed, while still providing strong incentives for users to stake their tokens.

1. **Staking Process:** 

* Users can lock up their **KROWN** tokens in a staking contract via the **Krown Wallet** or

  **KrownCash** app. The more **KROWN** a user stakes, the higher their chances of being

  selected to validate transactions and earn rewards.

2. **Reward Pool from Transaction Fees:**

* Instead of minting new tokens, the staking rewards come from the **transaction fees** paid

  by users of the network. Every transaction on the Krown Blockchain incurs a fee, and a

  portion of this fee is distributed to validators who participate in securing the network.
* For example, a percentage of the **5% buy/transfer tax** and **10% sell tax** is allocated to the

  **staking rewards pool**, ensuring that active validators are compensated for their work.

3. **Validator Selection and Rewards:**

* Validators are chosen based on the amount of KROWN staked and the randomness built

  into the PoS algorithm. Once selected, validators validate a block of transactions and earn

  rewards.
* **No New Tokens**: Instead of receiving newly minted tokens, validators earn a share of the

  transaction fees paid by users in the validated block.
* The **staking reward pool** is sustained by ongoing activity within the network, meaning the

  more transactions occur, the larger the reward pool for stakers.

4. **Claiming Rewards:**

* Stakers can claim their share of the rewards from the **transaction fee pool** at regular

  intervals. The rewards are directly tied to the number of transactions processed on the

  network, encouraging validators to stay active and engaged.
* Users can either re-stake their rewards to compound their earnings or withdraw them for

  use in other areas of the ecosystem.