🎯Staking Rules
Locking Period
The $BTCH project introduces a locking period mechanism designed to enhance the project's financial stability and reward committed participants. With a significant Annual Percentage Yield (APY) on offer, this feature plays a pivotal role in aligning user behaviour with the project's long-term prosperity.
How It Operates:
A 2-year locking period is applied to a user's staked $MK tokens. This timeframe is selected to provide a balance between rewarding users and maintaining token supply predictability. The locking period is reset to 2-year from the time of any action that changes the user's staked balance, including:
Staking more $BTCH tokens
Claiming staking rewards
Withdrawing staked tokens
Automatic Re-staking and High APY:
To capitalize on the high APY returns, claimed rewards are automatically re-staked, which both enhances the user's future earning potential and resets the locking period for the total staked amount. This mechanism is crucial due to the generous returns offered, ensuring that the benefits are geared towards users who are invested for the longer term.
Automatic Re-staking upon Withdrawal:
A unique feature of our staking protocol is the automatic claim function during a withdrawal. When a user decides to withdraw any amount of their staked $BTCH tokens, any outstanding rewards are automatically claimed and re-staked. Consequently, these newly staked rewards will start earning APY immediately, but the entirety of your remaining staked balance will be subject to the locking period requirements.
Rationale Behind the Locking Period:
The locking period is instituted for several strategic reasons, notably:
Market Stability: It mitigates market volatility by discouraging the immediate sale of newly claimed tokens, which could otherwise lead to price instability.
Long-term Investment Incentive: The reset of the locking period encourages holders to remain invested, aligning with the project's goals of sustainable growth and long-term value creation.
Maximizing Returns: With high APY returns, the automatic re-staking of rewards ensures that participants fully benefit from the compound interest effect, increasing their incentive to stay invested.
By carefully considering the interplay between high APY returns and the locking period, the $BTCH project aims to create a robust economic model that rewards loyalty and promotes a stable investment environment.
Last updated