# Tokenomics

## Liquidity Mining Rewards

SharkSwap encourages users to provide liquidity in order to support the market depth of trading pairs. Users who provide liquidity can get transaction fees and **$SHARK** tokens as rewards. Users lock funds in liquidity pools, earning a share of transaction fees and token rewards.

## $SHARK Burning

In order to dilute the supply of **$SHARK** tokens and increase token scarcity, SharkSwap regularly burns **$SHARK** tokens. This means that a certain number of tokens are permanently burned, reducing the supply on the market.

## Voting and Governance

Holders of **$SHARK** tokens have the right to participate in the governance of the SharkSwap platform. Holders can propose and vote for or against various issues, such as protocol upgrades, addition of new functions, etc.

## Community participation

SharkSwap's tokenomics model encourages community members to participate in liquidity provision, governance and platform development. Through token rewards and governance rights, community members can influence the direction of SharkSwap's development.