> For the complete documentation index, see [llms.txt](https://docs.primefi.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.primefi.xyz/rewards-and-tokens/prfi-staking/nft-staking-reward-system.md).

# NFT Staking Reward System

The live PRFI Staking Reward System lets users deposit PRFI tokens into NFTs and participate in reward mechanisms tied to each NFT's rarity and level. This token-in-NFT staking system is separate from the planned use of NFTs as lending collateral.

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## Core Concept

Users stake PRFI tokens into their NFTs. The NFT acts as a staking vehicle whose reward weighting reflects:

* The **amount staked**
* The NFT's **rarity tier** (base multiplier)
* The NFT's **level** (added multiplier)

The published design uses monthly reward periods. Actual eligibility, timing, and claimable amounts follow the current app and on-chain configuration.

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## Features

| Feature                  | Description                                                                                          |
| ------------------------ | ---------------------------------------------------------------------------------------------------- |
| **Token-to-NFT Staking** | Deposit PRFI into NFTs to participate in rewards weighted by rarity and level.                       |
| **Level Progression**    | NFTs progress through levels 1–20 as stake increases, boosting the added multiplier.                 |
| **Reward Accumulation**  | Qualifying NFTs may accrue PRFI from currently funded reward sources under the active configuration. |
| **Omnichain Support**    | NFTs can be bridged between Base and other supported chains via LayerZero.                           |
| **Merge System**         | Combine two same-rarity NFTs into a higher-rarity NFT.                                               |

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## Planned PrimeFi profit sharing

A future component has been described as allocating 40% of PrimeFi lending-and-borrowing protocol profits to qualifying PRFI NFT participants. It is **planned and not documented here as active**. Before activation, PrimeFi must publish the precise profit definition, exclusions, period, eligibility, distribution contract, and verifiable on-chain configuration. No current entitlement, payout, APR, or yield is implied.

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## Benefits

* **Active staking utility** - NFTs can be used to participate in the configured staking program.
* **Weighted participation** - Any available rewards are weighted by staking input, level, and rarity.
* **Inspectable contracts** - Deployed on-chain logic and configuration can be reviewed, subject to proxy, operator, and upgrade risk.
* **Upgradeable architecture** - Uses Diamond Standard / EIP-2535 components; upgradeability is an administrative trust boundary, not a security guarantee.

***

## Technical Architecture

The staking system is built on a **modular, upgradeable architecture (EIP-2535 Diamond Standard)** with cross-chain capabilities powered by LayerZero:

| Component     | Purpose                                               |
| ------------- | ----------------------------------------------------- |
| `ERC721Facet` | NFT logic: minting, burning, bridging, metadata       |
| `StakerFacet` | Staking engine: stake, merge, lock, rewards, claiming |
| `AdminFacet`  | Configuration, pausing, access control                |
| `GetterFacet` | Read-only data for frontend and integrations          |