> For the complete documentation index, see [llms.txt](https://labelfi-1.gitbook.io/labelfi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://labelfi-1.gitbook.io/labelfi/basics/labelfi-solutions/3.3-token-based-incentive-model-lbf.md).

# 3.3 Token-Based Incentive Model (LBF)

Labelfi introduces its native token, LBF, as the primary means of compensating contributors. The platform adopts a hybrid proof-of-work (PoW) and proof-of-stake (PoS) consensus mechanism to distribute tokens fairly. This dual mechanism ensures that participants not only earn tokens for contributing computational power (PoW) but also for holding and staking tokens (PoS), promoting long-term engagement and platform stability \[1].

**The key components of the LBF tokenomics model include:**

* Proof-of-Work (PoW) Rewards
* Proof-of-Stake (PoS) Rewards
* Platform Sustainability