Bond Staking
Earn rewards by staking your UNIT tokens.
Overview
Bond Staking, or bonding, involves locking UNIT tokens for a predetermined period to earn fixed 10% Annual Percentage Yield (APY) rewards.
It's distinct from Liquidity Pool Staking, offering a simpler way to earn rewards without engaging in complex liquidity provision activities. This incentivizes long-term holding, provides sustained rewards, and contributes to community expansion and network growth.
Bond staking on the Unit Network extends to all tokens generated within the network.
Token administrators have the flexibility to set the Annual Percentage Yield (APY) between 1% to 30% and establish an unbonding period ranging from 0 to 28 days.
Users retain the option to contribute additional tokens to a bonding pool voluntarily.
This system empowers token administrators to customize staking parameters while providing users with flexibility and participation options, thereby fostering a dynamic staking ecosystem within the Unit Network.
UNIT tokens serves several key purposes:
Augmenting Circulating Supply: By allowing users to stake their UNIT tokens, the circulating supply of UNIT gradually increases over time. This can help in maintaining liquidity and ensuring a healthy trading environment for UNIT.
Sustained Rewards for Early Adopters: Bond staking provides sustained rewards for early adopters of UNIT, incentivizing them to hold onto their tokens for longer periods. This can aid in community expansion by rewarding early supporters and fostering loyalty within the community.
Boosting Holdings Without Acquiring Additional Tokens: Bond staking allows any UNIT token holder to increase their holdings without needing to acquire additional UNIT tokens from the market. This provides an opportunity for existing holders to grow their stake and potentially increase their influence within the network.
Contributing to Network Growth: By alleviating selling pressure, bond staking contributes to the overall growth and stability of the UNIT network. It encourages token holders to stake their tokens rather than selling them, which can help in reducing market volatility and attracting new participants to the network.
Overall, bond staking for UNIT tokens plays a vital role in incentivizing community participation, fostering long-term holding behaviors, and supporting the growth and stability of the UNIT network.
Bond staking process for UNIT tokens:
No Charges for Staking/Unstaking: Users can stake and unstake their UNIT tokens without incurring any charges or fees.
28-Day Unbonding Period: When users initiate an unbonding request, their locked UNIT tokens will enter a 28-day unbonding period. During this period, the tokens won't accrue any rewards. After the unbonding period is completed, users can withdraw the tokens into their wallet.
Claiming Daily Rewards: Users need to claim their bond staking rewards daily. However, there's a condition that these rewards must be claimed within 7 days of issuance. If not claimed within this timeframe, the rewards will revert to the bond staking pool.
With these conditions in place, users can stake their UNIT tokens, unlock them after a 28-day unbonding period, and claim their daily rewards within 7 days of issuance to ensure they receive their rewards without reverting to the staking pool.
Unit Tokens Bond Staking Reward Schedule:
APY (Annual Percentage Yield): Fixed at 10%. This means users will earn 10% of their staked amount as rewards annually.
Staking Pool: Initially set at 200 million UNIT tokens.
Unbonding Period: Set to 28 days. Users must wait for 28 days after initiating an unbonding request to withdraw their staked tokens.
Pool Depletion: The rate at which the pool diminishes is directly influenced by the number of users staking. More stakers result in faster pool depletion, meaning the rewards will be distributed among more users, potentially reducing the individual reward amount.
Reward Distribution: Tokens obtained from bond staking rewards are promptly transferred to users' wallets. This ensures that users can access their rewards as soon as they are earned.
Unbonding Process: Users can initiate unbonding for any portion of their total staked tokens, subject to the 28-day unbonding period. Unbonding requests can be canceled within the 28-day period, with no awards for potential UNIT earnings during that time.
Claiming Rewards: Users can claim bond staking rewards daily. Additionally, users have the option to re-stake their rewards, allowing them to leverage compounding returns and potentially increase their overall rewards over time.
With these specifications in place, users can stake their UNIT tokens, earn rewards at a fixed APY of 10%, and have the flexibility to manage their staked tokens through the unbonding process while being able to claim rewards daily and opt for re-staking for compounding returns.
Bond staking is available for all tokens generated on the Unit Network.
Token administrators have the discretion to set the fixed Annual Percentage Yield (APY) within the range of 1-30% and define an unbonding period ranging from 0-28 days.
Users retain the flexibility to contribute additional tokens to a bonding pool at their discretion.
This setup empowers token administrators to tailor staking parameters while offering users the freedom to participate according to their preferences, fostering a versatile staking environment within the Unit Network.
How to register a token for Bond Staking:
To register a token for bonding, token owners must follow these steps:
Provide APR (Annual Percentage Rate): The token owner needs to specify the Annual Percentage Rate (APR) for the rewards, which should fall within the range of 1-30%. This APR determines the annualized rate at which rewards will be distributed to users who bond their assets.
Specify Unbonding Period: The token owner must specify the unbonding period, which is the duration users need to wait after unbonding their assets before they can withdraw them. This period should be between 0 to 28 days.
Determine Initial Reward Amount: The token owner needs to determine the initial amount of rewards that will be paid out to users who stake their tokens. This initial reward amount will be drawn from the token's bank and transferred to the reward pool, where users can claim their rewards.
Transfer Initial Rewards to Reward Pool: After determining the initial reward amount, the token owner must transfer this amount from the token's bank to the reward pool. The reward pool serves as the source from which users will claim their rewards.
Accept Token Donations: Any user can donate tokens to the reward pool after the token registration process. These donated tokens will contribute to increasing the reward pool, thereby allowing for higher rewards to be distributed to users who stake their tokens.
Once these steps are completed, the token will be registered for bonding, and users can start staking their assets to earn rewards based on the specified APR, unbonding period, and the initial reward amount provided by the token owner.
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