# Staking

### Restaking

Restaking allows users to stake assets such as CNPY or other Canopy native assets across multiple app chains, thereby extending a Root Chain's cryptoeconomic security to additional applications on the network. Effectively, **restaking** allows validators on Canopy to reuse their bonded collateral from one chain to secure multiple other chains, alleviating the [L1 cold-start problem.](/docs/canopy-network/why-canopy/background-and-industry-state.md#have-the-cold-start-problem)

#### Gain Actual Exposure to Nested Chains by Staking

The utility of Canopy is to be the first [Security Root](/docs/canopy-network/core-features/peer-to-peer-security.md) for the ecosystem, seeding the Peer-to-Peer security future by sheltering Nested Chains. When Validators perform consensus on behalf of [subsidized](/docs/canopy-network/canopy-economics/staking.md#committee-subsidization) Nested Chains, they earn [CNPY](/docs/canopy-network/canopy-economics/cnpy.md) **as well as the native token of the Nested Chain**. Validating and Delegating in the Canopy protocol earns the participant a \*portfolio of tokens\* - not the speculation of value accrual, actual tokens.

#### Recursion

Canopy's architecture promotes a self-reinforcing chain of L0s where mature Nested Chains shelter other new chains the same way their parent Security Root did for them. This means that the native assets of Canopy chains automatically have the same staking utility as their Security Root.

#### Generational Diversification

This means that each asset earned in the aforementioned **portfolio of tokens** enables participants to earn a **new** **portfolio of tokens**. This cycle is exponential and continues from generation to generation, promoting unstoppable exposure of new assets.

### Committee Subsidization

The quorum of Validators registered on the *Root Chain* to perform Consensus services for a *Nested Chain* is called a **committee**. A committee that receives rewards from the Canopy blockchain (or any other Security Root) is called a **subsidized committee.** Simply put, a subsidized committee is a committee that receives an allocation of the Root Chain block reward. 

{% hint style="info" %}
For a Committee to be subsidized, it must have more than 33% of the `total`` ``stake` committed to it.
{% endhint %}

Here's an example:

* Validator A has 10 stake and is [restaked](#restaking) for chain `1`
* Validator B has 25 stake and is [restaked](#restaking) for chains `1 & 2`
* Validator C has 65 stake and is [restaked](#restaking) for chain `3`
* Total stake = 100

<table><thead><tr><th width="87.1370849609375">Chain</th><th width="301.1199951171875">Calculation</th><th width="121.93115234375">Percentage</th><th width="91.377197265625">Result</th><th width="128.36376953125">Subsidized?</th></tr></thead><tbody><tr><td>Chain 1</td><td>valA {10} + valB {25} / totalStake {100}</td><td>35%</td><td>≥ 33%</td><td><mark style="color:green;"><strong>✓</strong></mark></td></tr><tr><td>Chain 2</td><td>valB {25} / totalStake {100}</td><td>25%</td><td>&#x3C; 33%</td><td><mark style="color:red;"><strong>X</strong></mark></td></tr><tr><td>Chain 3</td><td>valC {65} / totalStake {100}</td><td>65%</td><td>≥ 33%</td><td><mark style="color:green;"><strong>✓</strong></mark></td></tr></tbody></table>

{% hint style="info" %}
The subsidized committees in this example are chains **1 and 3**
{% endhint %}

### Delegators

Non-technical actors may participate in Canopy by being a Delegator: a Validator that never participates in BFT Consensus. These staked participants greatly influence the subsidization status of Committees as their collateral is counted towards a Nested Chain's qualification. By staking as a Delegator, you receive [Block Reward](/docs/canopy-network/canopy-economics.md) in both CNPY and the native Nested Chain assets.

{% hint style="info" %}
Just like Validators, delegators can restake their collateral towards multiple committees!
{% endhint %}


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