> For the complete documentation index, see [llms.txt](https://liachain.gitbook.io/whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://liachain.gitbook.io/whitepaper/lia-coin/value-mechanisms.md).

# Value Mechanisms

Lia Coin (LIA) possesses a set of value mechanisms designed to support the healthy and sustainable growth of the ecosystem. These mechanisms are combined to preserve and enhance the token’s long-term value:

## Limited Supply

**Definition:** The total supply of LIA is limited to 230 million tokens. This limitation ensures the token remains a scarce asset in the market.

**Impact:** The limited supply contributes to the increase in LIA’s value over time, as the token’s value tends to rise with increasing demand due to the fixed supply.

## Staking Rewards

**Definition:** Users contribute to the security and stability of the ecosystem by staking their LIA. In return, they earn rewards by locking their tokens for a certain period.

**Impact:** Staked tokens reduce the circulating supply, which helps increase the token’s value. It also enhances users’ commitment and participation in the ecosystem.

## Burning Policy

**Definition:** LIA’s burning policy involves periodically removing a portion of the token supply from the market permanently. This process is typically financed by a percentage of the revenue generated from the ecosystem.

**Impact:** The burning process increases the token’s scarcity by reducing the supply, thereby raising LIA’s value. This process demonstrates that the ecosystem maintains a healthy financial structure and actively manages the token’s value.

These value mechanisms support Lia Coin’s circulation and usage within the ecosystem while maintaining the project’s financial health and sustainability. They also increase investors’ and users’ confidence in the project and contribute to the long-term success of Lia Coin.