# kaal:claim:5454054-006

**Claim.** Because LER requires no lock-up of the underlying equity or token, it increases liquidity and reduces sell pressure on the underlying asset, unlike conventional staking-style loyalty schemes.

**Type.** mechanism  **Support.** argued

**Holds when.**

- rewards accrue on the basis of verified holding duration rather than escrowed assets

**Source quote.**

> But, LER does not require lock-ups for the underlying equity or token assets, thus increasing liquidity and reducing sell pressure on the underlying equity or token assets.

**From.** Wulf A. Kaal, *Liquid Equity Rewards* (2025), Optimizing Benefits for Consumers, page 11

**Cite as.** Wulf A. Kaal, Liquid Equity Rewards (2025). SSRN: https://ssrn.com/abstract=5454054

**Verify.** sha256 of source PDF `9f53a865e6f0e5424640779df8f9b50923cd7d05649301dd4cc727144749b6e6` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202025%20-%20Liquid%20Equity%20Rewards.pdf

**Topics.** defi

**Keywords.** liquidity, lock-ups, sell-pressure, time-weighted-accrual, liquid-staking

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