vAZKA

Staking vAZKA

The only reason to convert AZKA to vAZKA is to participate in the staking program and receive a pro-rata share of protocols fees. Hence, whenever AZKA is converted for AZKA it is automatically staked in the staking pool.

Protocol fees are distributed over time and can be claimed at anytime. When a user un-stakes their vAZKA, it automatically enters the 90 day vesting period and converted to AZKA linearly at a 1:1 ratio.

Any vAZKA that is earned through participating in the dLP program or in disqualification bounties can either be staked to earn a share of protocol fees or unlocked for AZKA in the 90 day vesting mechanism.

Vesting

Users that select the vesting option can accelerate their vesting. What this does is it allows the user to claim all their rewards but with a time based penalty that accounts for how much time has been spent in vesting.

The penalty is applied as follows:

penalty % = remaining time left / vesting period

for example, a user who burned 90 vAZKA on day 0, will have 1 AZKA unlocked each day for 90 days. On day 90, the full 90 AZKA will be unlocked. However, say on day 45 the user wishes to stop vesting. Up until that point the user would have unlocked 45 AZKA. The user has 45 days of a 90 day vesting schedule remaining. The penalty will be applied on the remaining unlocked 45 AZKA as follows: Penalty % = 45 days remaining / 90 day vesting schedule

hence, a penalty of 50% will be applied on the remaining 45 AZKA.

The user already has 45 AZKA unlocked and will receive another 22.5 AZKA, equaling a total AZKA of 67.5 AZKA. The remaining 22.5 AZKA incurred as a penalty will be burned from circulation.

If a user has only spent little time in vesting the penalty becomes more severe.

Disqualification Bounties

Only users that meet the dLP eligibility requirement can disqualify other dLP holders from continuing to earn vAZKA rewards. A bounty equivalent to the ineligible dLP holders unclaimed vAZKA can be claimed by executing the disqualification transaction. Those that don't meet the eligibility requirement can still participate in disqualifications but will be required to pay 50% the value of the bounty in AZKA tokens, essentially receiving the tokens at a 50% discount instead of receiving them free of charge. Any AZKA used to pay for bounties will be burned from circulation.