# Liquidity Provider Reward

![Figure 1. The Overall Token Flow of Liquidity Provider (LP) Reward](https://807555266-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Felp5nJx1i8OYvIyzVPpp%2Fuploads%2Fwjjhaw2PDIxGnhnVA2tI%2FJOY%20LP%20Diagram.png?alt=media\&token=443987ec-132b-4a4b-8b84-8c594b4c6181)

Since the JOY token acts as a governance voting power for governing the Drawshop Kingdom Reverse and a reward for the ecosystem participants, high exchange liquidity for JOY is crucial for maintaining a constant incentive flow.

To incentivize setting up the initial liquidity of JOY, 20% of the JOY tokens are allocated as **Liquidity Provider (LP) Reward**. JOY holders who provide liquidity to the JOY-KLAY pair on Klayswap and stake the LP token to the JOY-KLAY LP Pool on the Drawshop Kingdom can receive the LP reward. The rewards will be distributed pro-rata to the LP tokens they have staked.