# 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:
**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.
***
### 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
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