📥Rules
How it works and what to expect
Locking Period Mechanism in the $LUKT Project
ℹ️ Please Note: These are the general staking rules designed for the Luckaton Game.
➡️ Please follow the Staking During Presale link to find out about the Presale Staking Rules.
Introduction
The $LUKT project incorporates a locking period mechanism to bolster financial stability and reward its dedicated participants offering Annual Percentage Yield (APY) in $LUKT. This feature is crucial for encouraging user behaviors that contribute to the project's long-term success.
Mechanism Overview
Operation Principle: A 21-days locking period is enforced on users' staked $LUKT tokens to strike a balance between rewarding user participation and ensuring the predictability of the token supply.
Locking Period Triggers: The locking period is reset to 21 days following any transaction that alters the user's staked balance, including staking additional $LUKT tokens, claiming rewards, or withdrawing staked tokens.
Players incentive: Staking is designed for active players. To receive the automatically allocated staking rewards, players need to complete a minimum of 7 battles per week.
Enhanced Earning through Automatic Re-staking
High APY Utilization: Claimed rewards are automatically re-staked, optimizing future earnings potential and resetting the locking period for the total staked amount, thus supporting users committed to the long-term vision of the project.
Withdrawal and Automatic Re-staking: An innovative aspect of the staking protocol is the automatic claim and re-stake of rewards upon withdrawal. This means that if a user withdraws part of their staked $LUKT, any unclaimed rewards are automatically re-staked, initiating a new locking period for the total remaining staked balance.
Illustrative Scenario
Consider User A with a scenario involving withdrawal and automatic re-staking:
User A decides to withdraw 100 $LUKT from a staked balance of 500 $LUKT, with 50 $LUKT in unclaimed rewards.
The 50 $LUKT rewards are automatically claimed and re-staked.
User A effectively withdraws 100 $LUKT, leaving a new total staked balance of 450 $LUKT.
A new 21-day locking period is applied to this adjusted balance from the withdrawal moment.
Strategic Rationale for the Locking Period
Market Stability: By discouraging the immediate liquidation of newly claimed tokens, the locking period mechanism helps mitigate market volatility and price instability.
Long-term Investment Incentive: The mechanism encourages a long-term investment mindset among holders by aligning with the project's objectives for sustainable growth and value accumulation.
Maximizing Returns: Automatic re-staking of rewards amplifies the benefits of compound interest, further incentivizing participants to maintain their investment over time.
In summary, the locking period, with its careful balance between high APY returns and market stability considerations, aims to foster a robust economic model that rewards loyalty and encourages a stable, long-term investment environment within the $LUKT project.
Last updated