> For the complete documentation index, see [llms.txt](https://docs.stackingdao.com/stackingdao/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.stackingdao.com/stackingdao/the-basics/instant-and-daily-yield-with-stacking-dao.md).

# Instant & Daily Yield with Stacking DAO

Stacking DAO’s architecture lets **users earn yield immediately** when minting **stSTX** or **stSTXbtc**—no 14-day wait, no idle cycles. 

**Rewards are distributed daily,** boosting the utility of liquid staking tokens and making them more versatile across DeFi.

Let’s explore how this works.

{% hint style="info" %}

### **REMINDER: How does the Stacking Process Work?** 

Stacks’ consensus mechanism, **Proof of Transfer (PoX)**, enables  miners to bid BTC to win new Stacks blocks and earn newly minted STX along with transaction fees.

The BTC they commit is then distributed to STX stackers as a reward for supporting network security.

Depending on the Liquid Stacking DAO product selected, rewards are delivered in **STX or** **sBTC**. See the FAQ for full details on how rewards are distributed.
{% endhint %}

***

### How Stacking DAO Enables Immediate & Continuous Yield

There are three main mechanics behind this design:

<figure><img src="/files/o1iymDvP123c3OkHzUNi" alt="" width="563"><figcaption></figcaption></figure>

**1. Who Generates Rewards**

During **Cycle X**, rewards are produced by STX that’s already stacked via Stacking DAO.

Even if a user initiates the unstacking process, their STX remains locked and continues to earn until Cycle X ends.

New deposits made during Cycle X can't get stacked in that cycle but begin earning in Cycle X+1.

**2. The Common Rewards Pool**

All rewards generated during Cycle X can be treated as a shared rewards pool. This is what gets distributed daily to users in Cycle X+1.

**3. Who Receives the Rewards**

Rewards from Cycle X are distributed **daily** during Cycle X+1 and go to:

* Ongoing stackers
* New depositors (even if their STX isn’t yet actively stacked)

Users who begin unstacking during a cycle forfeit that cycle’s rewards, which are returned to the common pool and shared with remaining stackers.

<figure><img src="/files/887MzJK6jYKxPodj6rNw" alt="" width="563"><figcaption></figcaption></figure>

***

### Why This Design Outperforms Other Solutions

Most stacking services delay rewards:

* Deposits must wait for the next 2-week cycle to get stacked
* Rewards are only paid at the **end** of a cycle
* Users can’t access or move STX mid-cycle

**Stacking DAO solves all this**:

* **Daily yield starts immediately**
* **Liquidity is preserved** via stSTX and stSTXbtc
* **No waiting period** to enter or exit

***

### Summary: Immediate & Continuous Yield

**Immediate**\
New depositors start earning rewards from day one—even before their STX is actively stacked.

**Continuous**\
Rewards are streamed daily, using the previous cycle’s yield (Cycle X → distributed over Cycle X+1).

This makes Stacking DAO the only stacking service that aligns rewards with real-time DeFi participation—no delay, no friction