> 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.