# Staking

Ve-tokenomics is a pivotal component of ZeroLend's economic structure. It is designed to reward long-term investment and active participation in governance. \
\
At its core, it involves participants staking $ZERO tokens for a predetermined duration and receiving vote-escrowed (ve) tokens in return. These ve-tokens not only signify the user's stake but also escalate their benefits proportionally to the lock period.&#x20;

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The longer participants commit their tokens, the higher their rewards and influence in governance decisions.
{% endhint %}

### Why Ve-Tokenomics?

* Ve-tokenomics aligns user incentives with ZeroLend's long-term goals.&#x20;
* By locking $ZERO tokens, the effective circulating supply decreases, which can potentially enhance the token's value over time.
* Committed users receive a stronger voice in platform governance.

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With this model, we aim to foster a community of engaged stakeholders, contributing to the stability and growth of ZeroLend.
{% endhint %}

### Ve-Tokenomics Model

Zerolend introduces a unique ve-model that incorporates both:&#x20;

1. Single Stake $ZERO
2. zLP $ZERO

This dual approach enables users to engage with the platform through direct token staking or by participating in dynamic liquidity provision.


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