# Staking Model

**Network Staking**

Network staking enables $RCOF token holders to lock their tokens in a smart contract for a defined period, contributing to network security and stability. In return for staking, participants are rewarded with additional $RCOF tokens, transaction fees, or other incentives based on their contribution.

**Burning**

Burning mechanisms are used to decrease the circulating supply of $RCOF tokens over time, which increases scarcity and may lead to value appreciation. RCO Finance may implement periodic token burns, where a portion of the tokens is permanently removed from circulation, ensuring long-term value retention.

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