> ## Documentation Index
> Fetch the complete documentation index at: https://mintlify.com/p2pdotme/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# Staking Mechanics

> How Circle Admins, merchants, and delegators participate in staking

## Staking Roles

The protocol uses a multi-layered staking design that creates skin-in-the-game at every level:

### Circle Admins

**Circle Admins** stake \$P2P to operate merchant networks.

* Their stake is **slashable** for misbehavior
* A portion of their rewards is **locked as an insurance buffer**
* They earn 8.89% of protocol revenue for their operational work

### Merchants

**Merchants** stake USDC as working capital for order fulfillment.

* Their capacity is **bounded by their stake**
* Larger stakes enable handling larger orders
* They earn the majority of revenue (53.33% combined with delegators)

### Delegators

**Delegators** stake \$P2P to Circles to earn a share of revenue.

<Info>
  Only delegation to \$P2P-denominated Circles grants governance voting rights.
</Info>

* Earn portion of the 53.33% revenue share
* Participate in protocol governance through their staked tokens
* Can delegate to multiple Circles

## Staking Benefits

<CardGroup cols={2}>
  <Card title="Revenue Sharing" icon="coins">
    All staking participants earn from protocol transaction fees
  </Card>

  <Card title="Governance Rights" icon="vote-yea">
    Delegators to \$P2P Circles get voting power on protocol decisions
  </Card>

  <Card title="Network Security" icon="shield">
    Slashable stakes ensure good behavior from Circle Admins
  </Card>

  <Card title="Capacity Scaling" icon="chart-line">
    Merchant stakes determine their order fulfillment capacity
  </Card>
</CardGroup>

## Skin in the Game

The staking design ensures every participant has capital at risk:

* **Circle Admins:** \$P2P stake subject to slashing
* **Merchants:** USDC working capital locked for orders
* **Delegators:** \$P2P staked for revenue share and governance