When eligible tokens are staked in the Staking Pools, they are not locked. Rewards start to accrue instantly, but in an unrealized way, meaning stakers are entitled to a reward distribution as fees are collected by the treasury. Those staking rewards come in the form of $TIC-$USDC.e $ELP tokens. ElasticSwap charges a 50 bps fee as swaps occur (25 bps to LPs, 20bps to public stakers, and 5 bps for protocol operations). The public staker fees (the 20 bps due to the stakers) are converted by the treasury into $USDC.e, and then deposited into the Staking Pools contract, creating $ELP which represents a liquidity position in the $TIC-USDC.e pool. Stakers can claim their $ELP tokens and then restake them, or they can exit the $ELP position for the underlying $TIC and $USDC.e tokens.