Who receives the rewards from the Withdrawal Penalty?

This allocation of the withdrawal penalty is structured to ensure a balanced approach, enhancing the value for stakers, contributing to deflationary token supply, and supporting the ongoing development of Houdini Swap.

The distribution of the 25% withdrawal penalty is allocated as follows:

Staking Pool - 60%

  • Increasing Rewards: A majority of the penalty, 60%, is redirected back into the staking pool. This effectively increases the rewards for remaining stakers.

  • Distribution Method: These penalty rewards are smoothly distributed over a 30-day period in a per-second ‘dripping’ sequence.

Token Burn - 20%

  • Deflationary Measure: 20% of the penalty is burned on a weekly basis.

  • Impact on Circulating Supply: This burning process contributes to the deflation of the total circulating supply of the tokens.

Treasury - 20%

  • Supporting Growth: The remaining 20% is allocated to the treasury, which aids in supporting and growing the platform.

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