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How staking works.
Staking is one of the key elements of proof-of-stake blockchains. Validators stake APT tokens and offer transaction validation services in order to keep the Aptos blockchain operational. In exchange for this service validators receive emissions as rewards. Ditto helps users gain access to becoming a staking service provider without the overhead of running validators. We achieve this by allowing users to deposit APT, these deposits are then distributed to validators who run Aptos nodes on behalf of the Ditto network. As Ditto runs validation services rewards will accrue to stakers. As a liquid staking provider Ditto extends this one step further by returning users with a stAPT token which represents their stake and is usable similarly to APT throughout DeFi. Ditto's stAPT token is an index token, this means that it represents the users ownership of all the underlying APT that the Ditto protocol owns. As the protocol earns validation rewards, the stAPT owned by a user will reflect ownership of more and more APT.