> For the complete documentation index, see [llms.txt](https://rcofinance.gitbook.io/whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://rcofinance.gitbook.io/whitepaper/tokenomics/staking-model.md).

# 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.

<figure><img src="/files/E4AEgO2cTK3mE2sHERQN" alt=""><figcaption></figcaption></figure>
