> For the complete documentation index, see [llms.txt](https://filmfund.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://filmfund.gitbook.io/docs/tokenomics/staking-mechanism.md).

# Staking Mechanism

The staking mechanism is a key feature of the FilmFund.io platform, allowing investors to secure allocations in upcoming film projects while benefiting from staking rewards.

### **1. Staking Requirements for Allocation:**

* Investors must stake a minimum of 1,000 FFA to be eligible for allocation in a project’s security token offering.
* The more $FFA staked, the larger the allocation an investor can secure, up to a predefined cap for each project.

### **2. Reward System for Early Supporters and Long-Term Holders:**

* **Early Backer Rewards:** Investors who stake during the pre-funding phase receive a higher allocation percentage in the security token offering.
* **Long-Term Staking Rewards:** Users who stake their $FFA for extended periods are rewarded with additional $FFA tokens from the staking reward pool.

### **3. Deflationary Mechanisms:**

* **Token Burns:** A 2% burn is applied to all $FFA tokens converted into film-specific security tokens. This burn mechanism reduces the total supply, making the remaining tokens more scarce and valuable over time.

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