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description: Offer unique staking opportunities to start earning rewards prior to unlock.
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# Staking of Locked Tokens

With Kaizen, you have the option to make your locked token stakable and tradable. This opens up new opportunities for both investors and your project in terms of selling pressure and token management at no negative impact on the value of your token. &#x20;

### How it works

While the token sold originally remains locked in a smart contract, a new token dedicated is issued to represent the value and ownership claim to the one that is locked. Such tokens are issued in 1:1 ratio with locked assets, essentially, serving as collateral (e.g. $KZEN and $xKZEN tokens).&#x20;

As these tokens aren't locked in a contract, they are fully tradable and stakable. They can have unique utility value, carry greater rewards from staking, provide exclusive ecosystem benefits, etc.&#x20;

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Strategic use of locked tokens helps decrease the selling pressure of your token by up to 80% at unlock days, reducing volatility and creating a healthier market.
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The approach has enabled Kaizen partners to create an environment where token holders simply do not feel the urge to claim their unlocked tokens and sell them. Instead, the majority of early backed choose to continue to support their projects for increased rewards and benefits.
