Liquid Staking (gMON)

Magma is a DAO-owned Liquid Staking Protocol built on Monad. Magma enables Monad token holders to earn staking rewards while remaining liquid through Magma's Liquid Staking token, gMON.

When users stake their Monad tokens, they receive gMON, a receipt token, which can be redeemed for the underlying locked staked tokens. The receipt tokens can be used to participate in DeFi applications within the Monad ecosystem.

Monad utilizes a Delegated Proof-of-Stake (DPOS) consensus mechanism. Instead of running their own full nodes, most stakers delegate their tokens to a node operator.

At the launch of the protocol, Magma governance will whitelist a group of Monad node operators for delegation. When users deposit their Monad tokens, these tokens will be delegated amongst the node operators. In the second phase of Magma, liquidity will be migrated to nodes using Distributed Validator Technology (DVT), which enhances safety and decentralization. For more information on the migration roadmap, see here.