# Autocompounding in normal staking **URL:** \ **Category:** General\ **Created:** [October 20, 2024, 2:16pm UTC](https://agora.multiversx.com/t/autocompounding-in-normal-staking/466 "2024-10-20T14:16:47Z")\ **Posts on this page:** 2\ **Page:** 1
**Author:** ![drmelone](https://dub1.discourse-cdn.com/flex005/user_avatar/agora.multiversx.com/drmelone/32/20_2.png) [@drmelone](https://agora.multiversx.com/u/drmelone)\ **Post date:** [October 20, 2024, 2:16pm UTC](https://agora.multiversx.com/t/autocompounding-in-normal-staking/466/1 "2024-10-20T14:16:47Z")
On NEAR PROTOCOL they have a flag, which is set to true by default. If this flag is set to true, when initiating a new (native) staking position on a normal validator, then all rewards will be autocompounded for maximum capital efficiency. A user can opt-out of this by setting the flag to false (which, again, is set to true by default). If the flag is set to false, then he will instead receive claimable rewards. Advantages: - Free autocompounding - Max capital efficiency (APR stays the same, but the highest possible APY can be achieved, somewhat counteracting drops in APR) - Total staked amount of EGLD rises more consistently through the autocompounding (total staked amount is usually seen as an important key metric for blockchains) - It’s even advantageous to liquid staking protocols as they don’t have to restake rewards constantly Disadvantages: - Less transactions on chain, due to less people reinvesting rewards manually every few days or weeks, small drop in captured fees (but if this is our main concern, then we should try to get more usage instead of keeping up unnecessary fake usage) What do you think? How hard would it be to implement @robert @schimih ---
**Author:** ![robert](https://avatars.discourse-cdn.com/v4/letter/r/e95f7d/32.png) [@robert](https://agora.multiversx.com/u/robert)\ **Post date:** [October 21, 2024, 6:24am UTC](https://agora.multiversx.com/t/autocompounding-in-normal-staking/466/2 "2024-10-21T06:24:53Z")
Technically speaking pretty hard, as the whole reward computation has to be rewritten into a totally new format.