▫️Penalty Distribution

The 25% withdrawal penalty is strategically distributed to benefit the Houdini Swap ecosystem:

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Staking Pool - 60%

A major portion, 60%, is redirected back to the staking pool, effectively increasing the reward pool for the remaining stakers.

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Token Burn 20%

Consistent with our deflationary token model, 20% of the penalty is burnt on a weekly basis, contributing to the reduction of the overall token supply.

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Treasury 20%

The remaining 20% of the penalty is allocated to the treasury, supporting the platform's growth and development.

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Smooth Reward Distribution

The additional rewards from penalties are distributed to the staking pool over a 30-day period in a per-second ‘dripping’ sequence. This ensures that reward yields remain stable and impactful while providing a safety mechanism in the event of market volatility or black swan events by significantly increasing rewards and incentivizing stakers to remain.

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With tailored withdrawal options, the Staking Program balances immediate access needs with economic incentives to maintain a stable and growing ecosystem and its token value.