7.4 Benefits of Staking for the Ecosystem and Holders

The staking mechanism is designed to align with the ecosystem’s long-term growth and
support holders in maintaining Karma-based rewards:

• Supply Control and Price Stability: Staking pools reduce circulating supply,
  helping to stabilize token value and incentivize long-term holding.
• Increased Reward for Long-Term Commitment: Percentage bonuses on
  locked staking options provide additional incentives without guaranteeing
  fixed APR maintaining flexibility and responsiveness to staking pool size.
• Seamless Karma Integration: Staked tokens count toward Karma requirements,
  supporting community engagement and rewarding active ecosystem participants.

The NNN staking mechanism thus supports ecosystem stability, rewards long-term
holders, and maintains Karma eligibility, creating a robust and adaptable framework for
token growth and community loyalty.