Overview

Staking Tokens are Cryptocurrencies dedicated to supporting a blockchain network’s security and operations. This include both traditional Illiquid Staking Tokens, and Liquid Staking Tokens (LSTs) where the token holder receives tokenized representations of their stake that can be transacted.

Eagle Accounting has core functionality to restrict the sale of securities called Pledging. This can be used to prevent the staked tokens from being transacted. For more information, see Pledging & Restrictions Best Practices.

See Cryptocurrencies Best Practices for full details on Cryptocurrency processing in Eagle.

Illiquid Staking Tokens

For Illiquid Staking Tokens, the vesting schedule can be loaded using a Coupon/Reset schedule from Issue Viewer > Schedules > Add Schedule or the Schedule tab in RDC. The dates for each period should not overlap. This is for reporting purposes only as the Pledge must be explicitly released in accordance with the vesting schedule.

• Schedule Type (1250) = Coupon/Reset

• Effective Date (1109): first day of vesting period

• End Date (73): last day of vesting period

• Schedule Amount (1669): percentage or number of tokens vested

Liquid Staking Tokens

Separate security master files (SMFs) should be set up to represent LSTs. These can be set up the same was as the staked Cryptocurrencies, except with different identifiers and with Underlying Security ID (1348) populated as the Primary Asset ID (14) of the staked Cryptocurrency. LSTs can be transacted using free receives and delivers to adjust positions without generating cash, or buys and sells if cash is needed. The Pledge must be released from the underlying Cryptocurrency when it is no longer staked.