# Incentivizing Engagement

Currently, stakers of $LIFI can earn a **target yield of around \~14% APY**.\
These rewards may come from a combination of sources:

* A reserve token supply set aside for staking incentives.
* A portion of platform fees.
* Marketplace fee revenues.

By staking, participants **lock up $LIFI** (reducing circulating supply) and in return gain staking rewards, plus additional benefits such as:

* **Priority Perks:**\
  Stakers enjoy **priority verification** — their KYC reviews, asset approvals, and other onboarding steps might be **fast-tracked**.
* **Advanced Feature Access:**\
  Stakers unlock access to **premium features**, such as:
  * More complex tokenization structures (e.g., debt tokens, revenue-sharing instruments).
  * Early access to **new asset classes**.
  * Higher **API rate limits** for developers and institutions.

These incentives ensure that those who benefit most from Liquid (power users and large issuers) are motivated to **hold and stake $LIFI**, aligning their success with the platform’s long-term growth.
