Cooldown Engine: $MINTY staking and emission rewards

Overview

To ensure a healthy and sustainable token economy during Minterest's initial launch, all $MINTY emission and staking rewards will unlock monthly over 12 months using a cooldown engine. This mechanism starts after $MINTY becomes liquid.

How it works

The cooldown engine unlocks begin 1 month after $MINTY is transferrable. Unlocks are predictable and accumulate every month at a set rate of 8.33% per unlock, based on the available rewards balance in the user's account at that time.

Compounding rewards

$MINTY rewards can be compounded by choosing to auto-stake your rewards in governance even during the cooldown period. Simply enable “governance participation” on the user dashboard. Note that withdrawing the staked balance can reduce the user's loyalty boost, effectively lowering potential staking rewards. More information on the Loyalty Boost will be provided soon on the blog, with a preview of it available in the Technical Paper.

Cooldown Engine example

• First Month: If a user has accrued 100 $MINTY tokens, 8.33 $MINTY can be withdrawn during the first unlock at the end of the first month.

• Second Month: If the user does not withdraw and instead increases their rewards balance to 200 $MINTY before the second unlock, then 2 months of unlocks will be applied to the entire 200 $MINTY rewards balance. This results in 33.32 $MINTY that can be withdrawn at the end of the second month (2 months / 12 months * 200 $MINTY = 33.32 $MINTY).

By utilizing the cooldown engine, users can predictably and steadily access their rewards, promoting long-term participation and stability in the Minterest ecosystem.