The bemo protocol operates through smart contracts on the TON blockchain to manage TON deposits, mint and burn stTON tokens, handle validator transactions, calculate and distribute staking fees, and set the stTON/TON exchange rate.
When users stake TON, they receive stTOKENs that represent their portion of the TON pool. The amount of stTON issued depends on the staked TON volume and the current exchange rate between stTON and TON.
Validators process transactions on the TON network and earn TON rewards. Once service fees are subtracted, these earnings boost the value of the bemo TON pool, which in turn raises the value of stTON.
Users may unstake their stTON at any time, triggering a cooldown phase of 36 to 72 hours. Following this interval, stTON is exchanged for TON at the current rate, enabling users to withdraw their TON.