# Staked Positions (spNFTs)

The Pantheon utilizes a relatively new liquidity approach based on non-fungible single-sided staked positions, dubbed spNFTs.

These utility-bearing, governance positions act as an additional layer on top of a soulbound NFT, adding new features that will benefit both users and businesses.

The handling of locks on staked positions significantly improves capital efficiency through the introduction of various custom staking strategies.

**So, How Exactly Does It Work?**

Each staked PAN position has its own staking position NFT (or spNFT) that users can mint by wrapping their tokens (i.e. depositing them on the relevant contract). 

This NFT is known as vePAN. 

Upon creating a position, the deposit is sent to a specific corresponding contract in exchange for your vePAN NFT, which is essentially a kind of deposit receipt.

But, spNFTs are more than simple receipts: they replace the usual utility or yield generation that you will find in most DeFi projects, and also play the role of an additional layer of features offering unlimited new opportunities.

\**As an important note, upon unlocking your PAN from the spNFT contract, the spNFT will be burned, and there will be a 2% unlock tax on the PAN withdrawn.* 

*1% tax on PAN will be burned. 1% tax will be added to the Treasury.* 

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Those receipts are the only thing allowing a user to withdraw the corresponding funds.
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Unlike many existing NFTs, vePAN tokens have an intrinsic value. They can be redeemed for PAN tokens, provide benefits, and can be used for governance. 


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