If you are a holder of ITGR, you can stake your vested/unlocked ITGR to earn more ITGR as interests. We offer 45% APY for 3-year lock-up period, and 10% APY for 6-month lock-up period.
If you choose to stake your $ITGR, they will become fully locked up during the period, and come back to you after the staking period ends.The interest, however, is paid in liquid ITGR that is released every block, and can be claimed immediately.
If you stake 100 ITGR for 3 years, you earn 45 ITGR interest per year. Since these interests are liquid and released every block, they will not be counted as principal of your position. Over the course of 3 years, you earn a total of 45 * 3 = 135 ITGR.
At the end of the 3 years, the original 100 ITGR you staked is released and becomes claimable.
The interest comes from the community (aka Farming) token supply (40% of total supply), just like the farming yields.
The community portion still contains roughly 18% of total supply which can likely fund the staking interests for a few years even if a sizable percentage of tokens are staked. After a few years, when the community treasury is exhausted, the Integral DAO can vote to mint more ITGR to the community treasury to keep funding the staking interests.
However, if the DAO decides to stop funding the staking interests, then all staked ITGR will be immediately released. Up until that point, the 3-year staker will have been earning a 45% fixed APY.