▫️Penalty Distribution

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

Staking Pool - 60%

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

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.

Treasury 20%

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

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.

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.

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