The Victory of Staking Economics: How LA Achieves a Win-Win Model?

#Lagrange (LA) has built a win-win model for holders, protocols, and ecosystems through innovative staking economics design. Its core mechanism combines yield incentives, deflationary pressure, and governance participation, promoting the synergistic growth of token value and network security.

1. Positive Cycle of Staking Rewards and Network Security

LA adopts the EigenLayer restaking mechanism, allowing users to stake tokens to participate in the verification of zero-knowledge proof networks, earning annualized yields of over 20%. Stakers enhance network security by locking tokens while reducing market circulation, creating the effect of “staking is market protection.” Currently, 35% of the circulation has been staked, significantly reducing the risk of sell pressure.

2. Double Boost of Deflationary Model

The protocol uses 20% of on-chain revenue (such as zkML service fees) for buybacks and burning of LA, directly reducing supply. Combined with staking lock-up, LA's deflation rate can reach an annualized 5%-8%, continuously enhancing its scarcity. For example, mechanisms similar to BNB's quarterly burn have repeatedly triggered market bullish expectations.

3. Long-Term Value of Governance Participation @Lagrange Official

Stakers enjoy governance voting rights, allowing them to decide on key proposals (such as fund allocation and technical upgrades). Recently, the proposal of “20% of revenue for buybacks” was driven by the community, further strengthening the interests binding between holders and the protocol.

Conclusion: $LA achieves a win-win for user earnings and protocol development through the triple mechanism of “staking-burning-governance,” setting a benchmark for the sustainable economic model of the ZK proof network.