# Staking and Redemptions Staking $GRID on the network is done by done by converting $GRID to xGRID. Staking is designed for participants who wish to stake on-chain and for node validator operators. The longer users stake $GRID, the higher their effective yield becomes. Stakers are encouraged to contribute to the network's growth, participate in governance, and engage in other essential activities, all of which can increase their yield of both xGRID and $GRID tokens. ### Staking $GRID for xGRID When staking $GRID, users can convert it to xGRID at a 1:1 ratio at any time, with no penalties or unlock restrictions. ### Redeeming xGRID for $GRID To convert xGRID back to $GRID, users must go through a redemption process that includes a customizable unlock period. The longer the unlock period chosen by the user, the better the conversion rate from xGRID to $GRID. The redemption rate increases in proportion to the time xGRID has been held, and every redemption results in a portion of xGRID being permanently removed from circulation. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.gr1d.network/gr1d-tokenomics/staking-and-redemptions.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.