# sHOLI Staking

Staking HOLI creates **sHOLI**, a non-transferable share token. sHOLI has two jobs:

1. its balance is the holder's governance weight for Snapshot voting;
2. its rising HOLI exchange ratio allocates staking emission.

There is no separate governance token, MasterChef ledger, harvest action, or premium-purchase receipt. Newly minted HOLI is released only after its USDG [Seigniorage Tax](/supply/seigniorage-tax) is paid.

## Global exchange ratio

Let:

* <Md expr="A_t^s" /> be HOLI held by the sHOLI contract: deposited principal plus untaxed emission inventory;
* <Md expr="S_t^s" /> be effective sHOLI shares: claimed sHOLI plus shares represented by cooling receipts;
* <Md expr="R_t" /> be HOLI per sHOLI.

<Eq expr="R_t=\frac{A_t^s}{S_t^s}" />

The initial global ratio is <Md expr="R_{\mathrm{init}}=1" />. Treasury emission adds HOLI to <Md expr="A_t^s" /> without creating sHOLI, so <Md expr="R_t" /> rises. sHOLI balances do not rebase; their redeemable HOLI value does.

## Stake and seven-day receipt

When a user deposits <Md expr="D" /> HOLI at ratio <Md expr="R_t" />, the deposit creates

<Eq expr="\Delta s=\frac{D}{R_t}" />

effective sHOLI shares and a cooldown receipt:

<Eq expr="\text{receipt}=\{\Delta s,\;R_t,\;t+7\text{ days}\}" />

Each deposit needs its own unlock time. Those receipts exist only to enforce the seven-day wait; they are not priced emission receipts. The shares may be represented as contract-held sHOLI or as `pendingShares` included in <Md expr="S_t^s" />.

Cooling shares participate in later ratio growth, but they are not yet in the user's wallet. They cannot vote, transfer, or withdraw. After seven days the user claims the receipt, and its shares merge into the user's single sHOLI balance.

The per-deposit cooldown and the launch [7-Day Quiet Period](/launch/quiet-period) are different rules. The launch pause happens once. Every new stake receives its own seven-day receipt.

## One weighted entry ratio per user

An account does not retain one economic lot for every completed stake. It keeps:

* sHOLI balance <Md expr="s" />;
* one weighted-average entry ratio <Md expr="R_0" />.

Suppose the account already has <Md expr="s" /> sHOLI at average entry ratio <Md expr="R_0" />. A matured receipt contributes <Md expr="\Delta s=D/R_d" /> shares created when the deposit-time global ratio was <Md expr="R_d" />. The merged entry ratio is

<Eq expr="R_0' = \frac{sR_0+D}{s+D/R_d}" />

Equivalently, the contract may store `principalBasis = sR_0`, add <Md expr="D" /> whenever a receipt is merged, and expose <Md expr="R_0=\text{principalBasis}/s" />. That form reduces fixed-point rounding drift.

The weighted average preserves all earlier emission. Example: 100 sHOLI entered at 1.0 and the ratio later reaches 1.2, so the position has 20 HOLI of emission. Adding 60 HOLI creates 50 sHOLI and moves the weighted entry ratio to <Md expr="160/150" />. Total emission remains exactly 20 HOLI; the new deposit receives none of the earlier growth.

## Principal and emission

At current ratio <Md expr="R_t" />, an account with <Md expr="s" /> sHOLI and entry ratio <Md expr="R_0" /> has:

<Eq expr="\text{gross HOLI}=sR_t" />

<Eq expr="\text{principal}=sR_0" />

<Eq expr="\text{newly minted HOLI}=s(R_t-R_0)" />

Principal is the user's deposited HOLI. The difference is emission and cannot be released until its USDG seigniorage tax is paid.

## Withdrawals

For a partial withdrawal of <Md expr="b" /> sHOLI:

<Eq expr="B_b=bR_0,\qquad X_b=b(R_t-R_0),\qquad G_b=bR_t" />

The user pays seigniorage tax only on <Md expr="X_b" />, receives <Md expr="G_b" /> HOLI, and burns <Md expr="b" /> sHOLI. The remaining position keeps the same <Md expr="R_0" /> because principal and emission were removed proportionally.

A full withdrawal performs the same calculation on the full balance and then clears the account's entry ratio or principal basis. A principal-only exit may forfeit <Md expr="X_b" /> instead of paying tax; deposited principal must remain withdrawable.

## Governance weight

Governance weight is the claimed, non-transferable sHOLI balance:

<Eq expr="w_i=\operatorname{balanceOf}_{\mathrm{sHOLI}}(i)" />

Cooling receipts have <Md expr="w=0" /> until claimed. Because every claimed sHOLI uses the same current global ratio, raw sHOLI balances preserve the same relative voting shares as their current HOLI value. [Snapshot](https://snapshot.org) reads these balances at each proposal's declared snapshot block. A passed Snapshot vote is a decision, not an on-chain call; the dev Team multisig executes approved actions. [Governance & Execution](/governance).

## Staker rights and voting scope

Claimed, non-transferable sHOLI carries the rights below using the Snapshot balance at the proposal block. Cooling receipts have zero voting weight until their seven-day wait ends and they are claimed.

### Buyback proposals

HOLI holders normally exit along the [protocol-owned LP curve](/pol), not at a Treasury redemption desk. If market price is below NAV and undeployed reserves may be used to buy HOLI, sHOLI voters decide whether to spend reserves, the size, and the price cap / `minHoliOut` execution floor.

The Team Safe executes a passed proposal with `buybackAndBurn`: it swaps an approved external Treasury asset through a registered HOLI pool and burns the HOLI received in the same transaction. The contract requires market \< NAV, registered Treasury liquidity, and `minHoliOut`; the vote authorization and reserve-size policy remain off-chain governance.

### Emission, assets, and reserves

After the [quiet period](/launch/quiet-period), voters set whether staking emission is on and its rate. Governance cannot vote emission through a failed automatic premium gate. The formulas, 45% premium gate, and 69% tax multiplier are in [Seigniorage Tax](/supply/seigniorage-tax).

The same claimed sHOLI weight decides asset admission, Stock/HOLI pools, target LP sizes, risk caps, reserve allocation, later cap changes, and stops on new deployment. The team may allocate idle assets into already-approved pools only when undeployed reserves are again above 30%, or when a separate approval permits it. Details: [Asset Admission & POL Deployment](/treasury-mgmt/admission).

The AMM rule is not a vote: V4 pool fee is fixed at 0 and the Hook burn is fixed at 1%. A Snapshot result authorizes a decision but does not execute it; the dev Team multisig executes the corresponding Safe transaction. [Governance & Execution](/governance).