> For the complete documentation index, see [llms.txt](https://docs.magicsquare.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.magicsquare.io/magic-staking/sqr-staking/how-does-it-work.md). # How does it work? The staking mechanism for $SQR tokens is designed with simplicity and direct rewards in mind.\ **It has two primary parts:** earning APR returns and getting SQRp points for access to the Magic Launchpad. **Here's a breakdown of the process:** * **APR Returns:** When you stake $SQR tokens, you're entitled to Annual Percentage Rate (APR) returns. These returns are a form of compensation for the assets you've committed to the platform, serving as a financial incentive for your participation. * **SQRp Points for Launchpad Qualification:** Beyond financial returns, staking also grants you SQRp points, which are crucial for qualifying for Magic Launchpad Sales. The amount of SQRp points you earn depends on two factors: the volume of $SQR tokens you have staked and the duration of your stake. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## 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, and the optional `goal` query parameter: ``` GET https://docs.magicsquare.io/magic-staking/sqr-staking/how-does-it-work.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. 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.