Staking incentivizes users to lock their tokens, reducing circulating supply and stabilizing price. Reward mechanisms encourage long-term holding and network participation, fostering community engagement. Staking can also enhance governance involvement, allowing users to vote on proposals. Properly structured staking and rewards promote loyalty, utility, and adoption, while preventing sudden token dumps. Combining staking with liquidity pools and incentives strengthens ecosystem activity and increases token demand. By rewarding users for participation, projects boost token utility, market confidence, and overall network growth.
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