> For the complete documentation index, see [llms.txt](https://docs.kton.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.kton.io/getting-started/02-staking-deposit.md). # How Staking Works (Deposit) Staking with KTON means depositing Gram (the TON network asset) and receiving KTON, a liquid staking token that grows in value over time. This chapter walks through what happens when you deposit, in plain language. ## The big picture When you stake, you hand Gram to the public KTON pool and the pool gives you KTON in return. KTON is a normal, transferable jetton that sits in your wallet. You do not have to lock it, register it, or babysit it. From the moment you hold KTON, it is already earning. KTON is a **rate-appreciating** token. That means your KTON balance number does not change, but each KTON redeems for a steadily increasing amount of Gram. Right now 1 KTON is worth about 1.035 Gram, and that figure rises as the pool earns rewards. (The next chapters cover how that growth works and how to exit. This one is just about getting in.) ## Step by step ### 1. Connect a wallet Open the KTON app and connect any TON Connect compatible wallet (for example Tonkeeper, MyTonWallet, or any other wallet that supports TON Connect). KTON does not use a custom wallet integration: if your wallet speaks TON Connect, it works. ### 2. Choose how much Gram to deposit Enter the amount of Gram you want to stake. The app shows you the estimated KTON you will receive at the current rate. There is no protocol-enforced minimum deposit. On-chain, the only size rule is that after the processing budget is set aside, the remaining amount must be greater than zero. In practice keep about **1 Gram** in your wallet beyond the amount you intend to stake. This is a processing budget the transaction carries to mint KTON to your wallet, not a fee the protocol keeps: most of it is refunded to you, and you really only pay the small network gas consumed. ### 3. Confirm the transaction Approve the deposit in your wallet. The pool runs its round bookkeeping, sets aside about 1 Gram to fund the deposit, mints KTON to your wallet, and refunds the unused part of that budget. ### 4. Receive KTON KTON arrives in your connected wallet as a standard jetton. You can hold it, send it, or later redeem it for Gram (see the next chapter on unstaking). ## How much KTON do you get? KTON is minted based on the pool's exchange rate, which is the total Gram in the pool divided by the total KTON supply. Because KTON currently trades above par (about 1.035 Gram per KTON), you receive **fewer KTON than the number of Gram you deposit**, and that is expected. The value is the same; the units are just denominated in the appreciating token. For example, depositing 100 Gram at a rate of 1.035 mints roughly 96.6 KTON. As the rate climbs, those KTON redeem for more and more Gram over time. ## Optimistic vs pessimistic minting Behind the scenes a deposit can be settled in one of two modes. You normally do not need to think about this, but here is the difference at a high level. | Mode | What happens | When it applies | | --------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------- | | **Optimistic** | KTON is minted to you **immediately**, priced at the rate the pool projects for the end of the current settlement cycle. You walk away with KTON in the same transaction. | This is the live behavior on the public KTON pool today. | | **Pessimistic** | Your Gram is held and you receive a temporary receipt, with the real KTON minted when the cycle finalizes at the actual settled rate. | A fallback mode, not how the public pool operates today. | On the live public pool, deposits use the optimistic path, so you get your KTON right away rather than waiting for the cycle to close. ## You start earning immediately The moment KTON lands in your wallet, you are earning. The pool lends its pooled Gram to validators, those loans earn interest, and at the end of each settlement cycle the pool's profit (after fees) is folded back into the total Gram backing all KTON. Your KTON balance number stays the same, but each KTON becomes worth a little more Gram. This is **auto-compounding**. There is nothing to claim, no rewards to harvest, and no rebasing that changes your balance. You simply hold KTON and its redemption value grows. Yield is variable and depends on validator performance; it is not a fixed or guaranteed rate. ## A note on fees KTON is not fee-free, but depositing itself does not cost a protocol fee. The \~1 Gram your transaction carries when you deposit is a processing budget that mints KTON to your wallet, and most of it is refunded; you only pay the small network gas consumed. The real protocol fee is the 16% governance fee on staking **rewards** (the yield, never your principal). That reward fee is already reflected in the net rate of return you see in the app, so the displayed growth is what you actually keep. Withdrawal-side costs are covered in the next chapter. ## Quick recap * Connect any TON Connect wallet, deposit Gram, receive KTON. * Keep about 1 Gram of headroom beyond your stake amount for the deposit processing budget; most of it comes back to you. * There is no protocol-enforced minimum stake. * KTON is minted at the pool's exchange rate, so you receive fewer KTON than Gram deposited, and each KTON appreciates over time. * On the live public pool, KTON is minted immediately (optimistic mode). * Your KTON earns from the moment you hold it, with rewards auto-compounding into a rising redemption rate. Next: **How Unstaking Works** --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. 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