How does staking fit into tokenomics?
Staking encourages holders to lock up their tokens in exchange for rewards, often securing the network or contributing to ecosystem growth. From a tokenomics standpoint, staking reduces active supply, increases demand, and promotes long-term holding. Staking rewards must be balanced—too high, and inflation could hurt value; too low, and participation drops. Tokenomics consultants model staking incentives, APYs, and emission rates to align community behavior with project health.
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