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5.2.4 WNT Lockups
Locking tokens instead of staking it is a way for a token holder to express additional loyalty and confidence in Wicrypt network development, locking a token away has a positive impact on $WNT economy, and as such is classified as extra-incentivised behavior.
Locking the token means that the user can’t initiate the unstake procedure until the lockup period is over. The only option to release locked funds is co-called ‘emergency unlock’ at the cost of 30% of the principal amount, gradually reduced, proportionally to the amount of lockup days left.
Wicrypt will introduce 4 possible lockups:
- 3 months
- 6 months
- 9 months
- 12 months
Locking the $WNT tokens instantly boosts the staking score to the level that would have been achieved if these tokens had been staked for a locked amount of time.
Example: John has been staking 1000 tokens for the last 12 months, his staking score is now equal to 1000. Alex is not as patient as John. He wanted to achieve the same staking score right now, so he decided to lock his 1000 $WNT tokens on a 12 month lockup. He immediately earns a 1000 staking score, very much the same as John.
Same as with unstaking, there is no possibility to perform ‘partial unlock’, but anyone can freely: Extend the current lockup to the higher level (e.g. from 3 months to 6 months, or from 6 months to 12 months) Increase the size of lockup Convert current staked amount into lockup.
Extending or increasing the lockup means the total time of the lockup is subjected to reset (i.e. it starts again as if it was just created).
Example: John has locked 1000 $WNT tokens for 3 months. After 2 months, he decided to add $1000 WNT to that lockup. He now has one new 3-month lokcup for $2000 WNT.