# Staking and Validator

<figure><img src="/files/VJxpt7XFRqFxV7mddllQ" alt=""><figcaption></figcaption></figure>

Staking on Neural Tensor allows users to earn a passive yield on their wTAO holdings by staking them on the NTD protocol. The NTD protocol leverages the staked wTAO to generate returns and then shares a portion of those returns with the users who participated.

**Here's a breakdown of the staking and reward process:**

1. User stakes $wTAO on NTD: The user deposits their wTAO tokens into the NTD staking protocol. This locks up the $wTAO tokens in a smart contract.
2. User gets $ntTAO: In return for staking $wTAO, the user receives staked NTD tokens ($ntTAO). Essentially, $ntTAO is a derivative token of $NTD, and it represents the user's $wTAO stake on the NTD platform.
3. NTD protocol bridges $wTAO: The NTD protocol takes the staked $wTAO and bridges it to Bittensor. This process essentially allows the $wTAO to be used within the NTD ecosystem.
4. NTD protocol earns profits (up to 19%): The NTD protocol generates returns. NTD assigns share of rewards to users. Out of the 19% earned, the NTD protocol distributes the profit in $wTAO to users who had staked $wTAO. This functions as the incentive for users to participate in the staking process.

**Process to Unstake:**

1\. User requests to unstake $wTAO: The process begins with the user initiating a request to withdraw their staked tokens ($NTD).

2\. User receives wTAO + (yields): Before officially unstaking, stakers can presumably see a preview of the amount of wTAO tokens they will receive back, including any accumulated yields. This amount is denoted as "wTAO++" signifying the $wTAO tokens with accrued yields.

3\. NTD Protocol burns $ntTAO: The user's staked NTD tokens ($ntTAO) are burned by the NTD protocol.

4\. The NTD protocol bridges the user's wTAO tokens back from the external blockchain network to which they were bridged earlier (during the staking process).

5\. User receives wTAO (with rewards in ntTAO)

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