Staking incentivizes users to hold tokens, providing network security while reducing circulating supply. Rewards for staking encourage long-term participation and engagement with the ecosystem. Projects can use staking to boost adoption, support governance, and maintain liquidity. Well-designed staking models balance reward rates with tokenomics to avoid inflation while sustaining interest. Altcoins with attractive staking incentives often see stronger community loyalty, higher retention, and increased market stability.

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