# DeSo Tokenomics

DESO is the native token of the DeSo Blockchain. It is burned as a fee on every single transaction that is processed by the network, making it inherently scarce over time. It is also used to stake to nodes to secure the network as part of [DeSo's Revolution Proof of Stake Consensus](https://revolution.deso.com). The staking APY is subject to change, update-able by PoS hard fork (see [DeSo Governance](deso-governance)), and [is always listed on the block explorer's validator page](https://explorer.deso.com/validators).

Simply put, the more transactions that run through the DeSo network, the more fees are burned, and the more scarce the currency. In the short-term, the APY paid to support staking is inflationary, but staking rewards will be lowered over time, and in the short-term they encourage users to stake their DESO, which also has a deflationary effect.

In addition, apps launched by the Core Team, such as [Focus](https://focus.xyz) ([docs](https://docs.google.com/document/u/1/d/14Um8ErmoE8IhgZrACSI2FeTo2yji2Q1Hxvw7KNoozM8/edit)) and [Openfund](https://openfund.com) ([docs](openfund)) serve as [DESO Sinks](deso-tokenomics/deso-sinks).

**Read the next section to learn about DeSo's founding story, initial supply distribution, and more.**
