# Reward your token holders and drive protocol growth

*Design & deploy incentives to bootstrap protocol usage and accrue token value*

By [Tally](https://blog.tally.xyz) · 2025-10-30

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Well-designed incentives and staking programs attract aligned token holders who add value to your protocol. Tally provides a complete, modular staking solution—open-source smart contracts and a ready-to-use interface that makes participation effortless. Deploy reward programs and staking systems tailored to your protocol's needs without building infrastructure from scratch.

Protocols use Tally's incentives and staking solution to return protocol revenue to token holders, reward long-term commitment, encourage governance participation, incentivize DeFi liquidity, and compensate network validators.

**Key features of Tally's incentive and staking system:**

*   [**Multiple reward sources**](https://docs.tally.xyz/tally-features/staking/staking-customizations#returning-fees): Distribute rewards from protocol revenue, treasury assets, token emissions, or combine all three—in any ERC20 token or multiple tokens simultaneously
    
*   [**Governance integration**](https://docs.tally.xyz/tally-features/staking/staking-customizations#governance-integration): Staked tokens retain full voting power, so holders don't have to choose between earning rewards and participating in governance. Optionally, make rewards conditional on active governance participation
    
*   [**Validator support**](https://docs.tally.xyz/tally-features/staking/staking-customizations#network-protocol-validation): Compensate stakers and operators for validating protocol security and running network infrastructure
    
*   [**Stake streaks**](https://docs.tally.xyz/tally-features/staking/staking-customizations#stake-streaks): Reward long-term commitment with increased rewards for continuous staking periods
    
*   **Liquid staking support**: Enable token holders to earn rewards while keeping their tokens transferable and usable across DeFi
    
*   **Flexible eligibility criteria**: Design custom requirements for earning rewards based on specific behaviors that benefit your protocol
    
*   **Seamless user experience**: Your community can stake, track rewards, and manage positions through an intuitive interface
    
*   **Battle-tested contracts**: Deploy with confidence using audited, open-source smart contracts
    
    ![](https://storage.googleapis.com/papyrus_images/5febc8076f545e9b5d41da70f04c19d215aa7b34d6c11084ad822f2186fa7ba5.gif)
    

[Learn more about staking features and use cases](https://docs.tally.xyz/tally-features/staking/staking-customizations)

**Real protocols, real results**
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Leading protocols use Tally's staking solution to create compelling incentive and staking programs:

**ZKsync** is distributing 35 million $ZK through a delegation-based incentive program built on Tally's contracts and interface, offering up to 10% APR to token holders who stake and delegate.

**Obol** uses Tally's complete staking solution to power stOBOL, where contracts handle auto-compounding incentives while the interface makes participation seamless. With 11.05 million OBOL staked since launch, participants enjoy both immediate staking benefits and long-term value appreciation.

### **Case study: ZKsync combines staking with delegation incentives**

ZKsync leverages Tally's staking contracts and interface to reward token holders for staking while providing additional incentives for delegation.

![](https://storage.googleapis.com/papyrus_images/d7f3fbc3ef8936fbed7c9340e8f0167b38464dd106ae3aeced48d95568b50d2b.png)

**How it works:**

*   **Dual reward structure**: Earn returns through staking while supporting the protocol through delegation
    
*   **Competitive APR**: Up to 10% annualized returns for participants
    
*   **Phased incentive distribution**: Two three-month seasons with growing reward pools
    
    *   Season 1: 10M ZK rewards for 400M tokens staked
        
    *   Season 2: 25M ZK rewards for 1B tokens staked
        
*   **Seamless user experience**: Stake and delegate in just a few clicks through Tally's interface
    
*   **Flexible participation**: Choose your delegate while earning staking rewards
    
*   **Scalable infrastructure**: Built to support expanded incentive mechanisms as ZKsync evolves
    

[Learn more about ZKnomics Token Staking](https://claude.ai/chat/f11bad68-1130-4d12-9d00-1e93d642a2ff#)

### **Case study: Obol maximizes value with liquid staking and compounding incentives**

Obol's stOBOL system uses Tally's smart contracts and interface to combine staking rewards with automatic incentive compounding and full DeFi compatibility.

**How it works:**

*   **Auto-compounding incentives**: Rewards automatically accumulate and compound—no manual claiming required
    
*   **Intuitive dashboard**: Stake, track rewards, and manage stOBOL positions through Tally's interface
    
*   **Liquid staking design**: No lock-up periods—stOBOL is fully transferable at any time
    
*   **Stackable rewards**: Use stOBOL as collateral in DeFi protocols while continuing to earn staking rewards
    
*   **Set-it-and-forget-it experience**: Stake once and earn from multiple incentive streams automatically
    

[Read about stOBOL's DeFi integration with Pendle](https://x.com/Obol_Collective/status/1980989761293840575)

  

**Ready to launch incentives and staking?**

Tally provides everything you need—audited smart contracts and a polished interface—to create compelling reward programs that drive token holder engagement and protocol growth.

[**Explore the staking documentation**](https://docs.tally.xyz/tally-features/staking) or [**talk to our team**](https://tally.xyz/contact) to design custom incentive and staking systems with Tally.

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*Originally published on [Tally](https://blog.tally.xyz/reward-your-token-holders-and-drive-protocol-growth)*