# Liquid Staking (mMON)

### Introduction

Liquid staking is the foundation of Monbux. Instead of locking MON tokens in traditional staking, users can stake MON through Monbux and receive m**MON**, a liquid staking derivative that represents their staked assets.

gMON is fully transferable, meaning it can be held, traded, or integrated into other DeFi protocols while still accruing staking rewards.

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### How It Works

1. **Stake MON → Receive mMON**
   * When users stake MON on Monbux, the smart contract mints and issues mMON at a **1:1 ratio** (1 MON = 1 mMON initially).
2. **Reward Accrual**
   * As the underlying MON generates staking rewards, the value of mMON increases proportionally.
   * Example: Over time, 1 mMON may be worth **1.05 MON** due to accumulated staking rewards.
3. **Unstaking**
   * Users can burn mMON to redeem their MON (minus any applicable fees).
   * Minimum unstake requirements ensure efficient system operations.

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### Benefits of mMON

* **Liquidity:** Unlike traditional staking, users retain flexibility and can transfer or trade mMON at any time.
* **Rewards:** mMON continuously reflects staking yield without requiring manual claims.
* **Composability:** mMON can be used in upcoming **swaps, lending, and governance protocols** within the Monad ecosystem.
* **Transparency:** All staking, minting, and burning events are visible on-chain.

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### Example Use Case

* Alice stakes **100 MON** → receives **100 mMON**.
* After 3 months, due to rewards, 1 mMON = 1.08 MON.
* If Alice redeems, she burns **100 mMON** → receives **108 MON** (minus any fees).

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### The Future of gMON

mMON will evolve into a core asset of the Monbux ecosystem, serving as:

* A **collateral asset** in lending protocols.
* A **governance token** for decision-making.
* A **yield-bearing token** usable in swaps and liquidity pools.

By combining staking and liquidity, mMON unlocks **greater capital efficiency** for Monad users.