# Liquidity

## Liquidity-Backed Capacity&#x20;

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Every NodeK needs LYK locked to access network jobs. Liquidity-Backed Capacity (LBC) lets the community help machines reach that lock threshold so they can start contributing sooner. Contributors place LYK into a purpose-built pool, and those tokens are assigned in on-chain escrow to specific devices—no trading, no leverage, just community-backed capacity that brings more machines online, in more places.

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When an node operator requests additional lock for a device, the pool allocates LYK directly to that machine’s escrow. The device runs jobs as normal. A small, pre-set share of the machine’s daily emissions automatically routes back to the pool until the backing is cleared, after which the full emission route returns to the operator. Everything is transparent in-app: who is backed, how much is allocated, and the settlement progress—without moving tokens through user wallets or creating transferable claims.

&#x20;**Why it’s good for the network**\
LBC lowers activation friction and accelerates global coverage. More active devices mean lower latency, higher reliability, and capacity for more powerful workloads—strengthening LayerK's utility while aligning everyone around real work performed by real machines. It’s people-powered liquidity for network growth: simple, transparent, and purpose-built for putting hardware to work.


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