Early Withdrawal Fee

Overview

Users who unstake before the end of the designated staking period will incur a penalty calculated as follows:

Early Unstaking Rate ( Penalty Rate) = (1 - (Time Passed / Total Staking Duration)) * 10%.

Early Withdrawal fee = Total Stake * Withdrawal Rate.

These penalties typically incentivize users to commit their assets to the platform for longer, benefiting the ecosystem's stability and growth. Additionally, they help discourage users from frequent, short-term staking and unstaking, which can lead to instability in some DeFi protocols.

Example

User Deposit: 10,000 DEGO

Defined Staking Period 100 Days

Unstaked after 80 days

Early Unstaking Rate ( Penalty Rate) = (1-(80/100))*10% = 2%

Early Withdrawal fee = 10000 * 2% = 200DEGO.

Restake Rules

In a staking system, the staking duration can only be increased, not decreased. For example, if a user initially stakes 1000 $DEGO for 1 month and then adds 200 $DEGO for 2 years, the total staking becomes 1200 DEGO for 2 years.

The total staking duration is set by the longest individual staking period.

Unstaking Days and Early Unstaking Rate Correlation Table