@ruralretreat2gfd
Staking mechanisms that link rewards to critical network functions, such as transaction validation or governance, encourage active ecosystem participation. Aligning staking incentives with real utility discourages passive speculation and fosters community engagement. Protocols may reduce rewards over time to control inflation and reward early adopters. Diverse reward distribution, including tokens or other assets, can mitigate single-token volatility and expand user incentives.
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