> For the complete documentation index, see [llms.txt](https://ksgems.gitbook.io/ksgems/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ksgems.gitbook.io/ksgems/ksgems-token/tokenomics/staking-rewards.md).

# Staking Rewards

### **Profit Distribution to Stakers**

Profits generated from auctions are distributed proportionally to stakers based on their accumulated points. This ensures that rewards are directly tied to participation and investment in the ecosystem.

**Example Scenario:**

* **Auction Proceeds:** USD 1 million
* **Total Points Staked:** 10 million points
* **User A’s Points:** 10,000 points
* **Profit Share Calculation:**<br>

  <figure><img src="/files/mBrtm1tko06PCjMqiBHy" alt=""><figcaption></figcaption></figure>

This proportional rewards system incentivizes token holders to stake their tokens and remain actively engaged in the KSGEMS ecosystem.