Bond Staking
User-Created Token Bond Staking
Bond Staking on Unit Network allows users to lock their tokens for a set period in exchange for rewards, supporting network growth and incentivizing long-term participation. Unlike liquidity staking, Bond Staking is straightforward and provides a fixed Annual Percentage Yield (APY) on staked assets, designed to encourage holders to support their tokens and the ecosystem. This staking process is available for all user-created tokens on Unit Network.
Overview of Bond Staking
Fixed Rewards: Users lock their tokens to earn a fixed APY, typically set at 10%, but adjustable for other tokens. Increased Holding: ** Bond staking encourages users to hold onto their tokens longer, supporting network stability and growth. Accessible for All Tokens: ** Bond staking is available to all tokens created on Unit Network, providing a unified staking solution. **Flexible Staking Settings for Token Administrators
Customizable APY: Token administrators can set the APY within a range of 1% to 30%, based on network needs and market conditions.
Adjustable Unbonding Period: Admins can define an unbonding period from 0 to 28 days, allowing flexibility in token lock duration.
Enhanced Liquidity: Users can voluntarily add extra tokens to the bond pool, increasing liquidity and reward potential.
Key Benefits of Bond Staking
Reward for Holding: Continuous rewards incentivize early adopters to remain invested, fostering loyalty and community growth.
Boosting Token Holdings: Users can increase their holdings through staking without buying additional tokens, helping them grow influence in the network. Contributing to Stability: Bond staking reduces selling pressure by encouraging staking over trading, which promotes network resilience.
Bond Staking Process
Staking/Unstaking: Users can stake and unstake without fees, offering a seamless experience.
28-Day Unbonding Period: Typically, a 28-day unbonding period applies, during which no rewards are accrued.
Daily Rewards: Users must claim rewards daily, with a 7-day window to prevent forfeiture. Unclaimed rewards return to the pool for redistribution.
Compounding Options: Users can re-stake earned rewards, leveraging compounding returns to increase total rewards over time.
Administrator-Controlled Bond Staking Parameters
APY and Unbonding Setup: Admins can specify APY (1-30%) and unbonding periods (0-28 days) to align staking with token goals.
Initial Reward Pool Setup: Admins set the initial reward pool from the token’s treasury, forming the basis for staking rewards.
User Donations to Reward Pool: Users may donate tokens to the reward pool, boosting potential rewards for all stakers.
Purpose and Impact
Strengthening Circulating Supply: Bond staking sustains a healthy circulating supply and liquidity.
Rewards for Early Holders: Rewarding early participation builds loyalty and fuels community expansion.
Ecosystem Stability: Reduced market volatility and sustained network growth attract more participants and create a supportive environment for staking.