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Penalty

To establish a clear and fair penalty calculation policy for early unstaking in the ZBU Protocol, we created a system that is both transparent and incentivizes long-term participation. Here’s a complete penalty policy:

Early Unstaking Penalty Policy

  • Linear Penalty Rate: The penalty for early unstaking decreases linearly over the staking period.

  • Maximum Penalty Rate: 90% at the start of staking.

  • Minimum Penalty Rate: 0% at the end of the staking period.

  • To Staked Amount: The penalty is applied to the amount of ZBU tokens staked.

  • Penalty Rate at time of unstaking = Maximum Penalty Rate×(Remaining Staking Period/ Total Staking Period).

  • Example: If a user unstakes halfway through the staking period, the penalty rate would be 90%×(1/2) =45%.

Unstaking Threshold: Unstaking is not allowed if the penalty exceeds 90%.