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Nopes. staking COLONY automatically generate nothing, not even COLONY.
It give more COLONY rewards if you are in leaderboard.(playing game.)
if you are interested in fuel then below are steps.
@r1s2g3/arcade-colony-step-by-step-process-to-generate-fuel-in-moonkarts-8ce
RE: It is time to accumulate SPS,GLX and COLONY.