Warm-up Periods

Warm-Up Period is a novel reward mechanism that applies a dynamic multiplier to each staked position based on its total duration staked in range, which is taken into account when calculating the staking reward. This mechanism is designed to encourage long-term liquidity provision while offering flexibility for those who often need to adjust their price range to remain active due to liquidity concentration.

Understanding the Warm-Up Period Mechanism

1. Keep Staking for Higher Rewards: A penalty is applied to a newly staked position, which decreases gradually over time in 4 ranges. To earn maximum rewards, the position must be staked for more than 30 days.

2. Unstaking Resets Your Progress: Unstaking your position will reset your progress to the lowest multiplier. Once you reach the highest multiplier, you must keep your position staked to maintain maximum rewards.

3. Residual Rewards from Penalities: $GNS Incentives that are undistributed due to penalties for unstaking before reaching 30 days are sent to the community pool. For external Incentives, any remaining rewards are returned to the incentive provider's wallet at the end of the distribution period.

Multipliers are divided into 4 different ranges as the following:

• 0 to 5 days: estimatedRewards * 0.3

• 6 to 10 days: estimatedRewards * 0.5

• 10 to 30 days: estimatedRewards * 0.7

• More than 30 days: estimatedRewards * 1.0

As highlighted above, penalties (undistributed amounts) occur when staked positions are unstaked before reaching 30 days for full rewards. In the case of $GNS incentives, the residual rewards from penalties are sent to the community pool, a fund managed by xGNS holders through governance. For external Incentives, they are sent to the incentive provider's wallet at the end of the distribution period set by the incentive provider.

This mechanism strikes a balance between encouraging long-term participation in staking and accommodating the needs of those who seek flexibility for their staked positions to remain active due to liquidity concentration.