> For the complete documentation index, see [llms.txt](https://docs.libre.org/libre-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.libre.org/libre-docs/token-docs/a-reward-system-for-validators-and-stakers.md).

# LIBRE Rewards

In order to incentivize independent validators to run the chain, provide peg-in and peg-out services in a sharded fashion, the LIBRE coin operates as a reward system, accruing value from the DeFI and lending ecosystem. Stakeholders use their tokens to vote on validators they trust will keep the system honest. In exchange, when a peg-in or peg-out occurs, or when a loan is paid back or liquidated, the staked LIBRE holders receive wrapped Bitcoin.

Libre is in this way a Bitcoin-based ecosystem that draws Bitcoin from parts of the ecosystem, and re-directs that Bitcoin to other parts of the ecosystem in order to keep it working in a decentralized way.


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