> For the complete documentation index, see [llms.txt](https://docs.tan.live/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.tan.live/getting-started/core-concepts/tan-consensus-bpos/ecosystem-incetives.md).

# Ecosystem Incetives

The ***Ecosystem Incentives*** account for ***30% of the block reward*** in the ***TAN*** network. These incentives are designed to encourage various forms of participation and support for the network, ultimately driving growth and adoption. Here’s a detailed breakdown of how these incentives work:

## **# Developer Incentives:**

* **Purpose:** Promote the growth and development of the ***TAN*** ecosystem.
* **Mechanism:** Developers who contribute by building decentralized applications (dApps), smart contracts, or adding to the network's ***Total Value Locked (TVL)*** receive incentives.
* **Benefit:** This incentivizes developers to create tools and applications that expand the TAN ecosystem, fostering innovation and increasing the network's value. The goal is to make TAN a robust and versatile platform with a wide array of applications and use cases.

## **# Wallet Incentives:**

* **Purpose:** Encourage frequent use of TAN for transactions.
* **Mechanism:** Users who make frequent transactions are rewarded based on the volume of their transactions. For example, users completing transactions in increments of 1,000, 5,000, or 20,000 TAN will earn incentives.
* **Benefit:** This rewards users for using TAN as a means of exchange, increasing adoption and usage of the token. The more transactions users make, the more incentives they receive, promoting active engagement with the network.

## **# Staking Incentives:**

* **Purpose:** Reward users who stake their TAN tokens to secure the network.
* **Mechanism:** Users who stake their tokens receive additional incentives beyond block rewards. These rewards are designed to encourage users to lock up their tokens, helping to secure the network’s consensus mechanism.
* **Benefit:** Stakers are rewarded for contributing to network security and stability, and the extra staking rewards provide an ongoing incentive to hold and stake TAN, further decentralizing and securing the network.

## **# Holding Incentives:**

* **Purpose:** Reward long-term investors for holding TAN.
* **Mechanism:** Investors who hold TAN for extended periods receive incentives based on the length of time they hold the token. The longer they hold, the more incentives they earn.
* **Benefit:** This encourages a stable holder base, reducing market volatility and supporting the long-term value of TAN. It also enhances the token’s value proposition by rewarding investors for their patience and belief in the network's future.