# How does the Land Bank work?

The Land Bank is a fundamental component of the Districts token economy, serving as the core DeFi primitive that underpins the platform’s virtual land system. It operates as a staking mechanism where users must deposit 5,000 Native Realio Network Tokens ($RIO) to mint Land Pixels (unique virtual representations of real-world locations). Of this deposit, 1,000 $RIO is burned, while 4,000 $RIO is retained in the Land Bank and can be redeemed minus a fee later. 

The Land Bank establishes a Floor Price for Land Pixels, ensuring that the minimum resale value is maintained and increasing over time as the platform accrues fees. Users can sell their Land Pixels back to the Land Bank, subject to a 7-day unbonding period, or stake them to earn governance tokens ($DSTRX) at a gradually diminishing rate. By acting as both a staking repository and a pricing mechanism, the Land Bank helps sustain the Districts’ economy and facilitates decentralized governance transitions as the platform evolves.

*To read the full tokenomics, check out the*[ *Districts Token Economy Whitepape*r](https://districts.xyz/files/Districts_Token_Economy_Whitepaper.pdf)<br>


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