Gamified Locking

Tokens awarded to users are automatically locked, and locked tokens are illiquid. If users wish to sell their tokens and realise financial gain, they have to undergo a 4 week ‘unlocking period’, which begins at the moment of unlocking initiation.

During the 4 week period, tokens are claimable at any time, however depending on which point in time the tokens are claimed at, not all may be made available to the user. For example, if a user does not wish to wait 4 weeks to receive tokens, they may claim them sooner, but will not receive the full amount. The unrealised amount will be directed to the rewards pool to be redistributed to the remaining lockers in the next Airdrop Season.

This percentage of tokens that are unrealised is variable, and varies according to how much time is remaining in the unlocking period. This fee is determined according to the following bonding curve:

Points scored

If tokens are claimed on the first day of the unlocking period, 50% of the originally locked tokens are taken as the early unlocking fee. If tokens are claimed on day 9 of the unlocking period, 35% of the originally locked tokens are taken as the early unlocking fee. Here are the values shown in table format.

Day	discount
1	50%
2	48%
3	46%
4	44%
5	43%
6	41%
7	39%
8	37%
9	35%
10	33%
11	31%
12	30%
13	28%
14	26%
15	24%
16	22%
17	20%
18	19%
19	17%
20	15%
21	13%
22	11%
23	9%
24	7%
25	6%
26	4%
27	2%
28	0%

The benefits of implementing these early unlocking fees are as follows:

• Creates powerful incentive alignment between long term stakeholders in the network

• Encourages long term locking and reduces risk by imposing a greater fee on early unlockers

• Enables healthy governance by accruing most governance power to parties that are most long term aligned with the interests and health of the protocol

The implication of this mechanism is profound; it creates a system where aligned stakeholders gain the most value and power in the network, creating a net-positive effect for the rest of the ecosystem.