# Holding **Overview:** The simplest strategy is to just **buy and hold $WM tokens**. **Implications of Holding:** While holding may sound easy, it is generally **not the most capital-efficient strategy** under a deflationary rebase model: * After each rebase, your wallet will show fewer tokens. This can seem alarming, and if users are unaware of the mechanics, it may resemble a loss. (See [FAQ](/faq.md)) * Simply holding means you're not earning additional $WM rewards. Other participants who provide liquidity or bond will be gaining extra tokens as rewards or discounted purchases. Over time, those actively participating will increase their share of the total supply relative to passive holders. * In effect, a pure holder’s stake can be **diluted** relative to others. Even though every individual holder’s balance shrinks by the same *percentage* each rebase. New tokens entering circulation (through rewards) are captured by active participants. This means a holder’s percentage ownership can decline if they are not also getting those new tokens. * Bottom line: Holding $WM in isolation will preserve proportional share **only if no new tokens are being given out elsewhere**. But since the protocol is distributing some tokens as incentives, a holder will slowly lose ground to those earning rewards. However, most participants are expected to use more active strategies to maximize their gains. Simply put, **holding is the baseline option** – easy but relatively **inefficient** and usually outperformed by the following strategies. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.womo.finance/value-extraction-strategies/strategies/holding.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.