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Bond Staking

Overview:

The Unit Bonds Pallet enables staking of assets within the Unit Network. This mechanism is essential for users aiming to earn rewards through staking. Rewards are based on an Annual Percentage Rate (APR) and can be claimed after an era. The system supports claiming rewards for the last seven eras. It is important to note that reward claiming is a manual process conducted by the stakers themselves.

Goals

  • Enable asset registration for staking by the asset's owner.

  • Allow for the staking and unbonding of funds to earn rewards.

  • Permit the withdrawal of assets after the unbonding period.

  • Offer functionality for canceling the unbonding process and restaking the funds.

Bond Staking, also known as bonding, is a process in which users lock their UNIT tokens for a specific duration to earn a fixed 10% Annual Percentage Yield (APY) in rewards.

Unlike Liquidity Pool Staking, which involves more intricate liquidity provision activities, Bond Staking offers a straightforward approach to earning rewards.

This method encourages users to hold onto their tokens for extended periods, ensuring continuous rewards while supporting the growth of the community and the network.

Extension to All Tokens:

Bond staking on the Unit Network is applicable to all tokens generated within the network, providing a comprehensive staking solution for various token holders.

Flexibility for Token Administrators:

Token administrators have the authority to set the Annual Percentage Yield (APY) within a range of 1% to 30%, allowing for customization based on network requirements and market conditions.

They can also establish an unbonding period ranging from 0 to 28 days, providing flexibility in determining the duration for which tokens are locked.

User Contribution Option:

Users have the freedom to voluntarily contribute additional tokens to a bonding pool, enhancing the liquidity and rewards potential of the staking ecosystem.

Empowerment of Token Administrators and Users:

This system empowers token administrators to tailor staking parameters according to specific needs and preferences.

Simultaneously, it offers users flexibility and participation options, fostering a dynamic and inclusive staking environment within the Unit Network.

Key Purposes of UNIT Tokens in Bond Stakings:

Augmenting Circulating Supply:

Staking UNIT tokens increases the circulating supply over time, ensuring liquidity and a robust trading environment.

Sustained Rewards for Early Adopters:

Bond staking offers continuous rewards for early adopters, encouraging them to hold onto their tokens longer, fostering community expansion, and building loyalty.

Boosting Holdings Without Acquiring Additional Tokens:

UNIT token holders can increase their holdings through bond staking without acquiring more tokens from the market, empowering existing holders to grow their stake and influence within the network.

Contributing to Network Growth:

By reducing selling pressure, bond staking supports the growth and stability of the UNIT network. It encourages holders to stake rather than sell, potentially reducing market volatility and attracting new participants.

Overall Impact:

Bond staking for UNIT tokens incentivizes community participation, promotes long-term holding, and contributes to the growth and stability of the network.

Bond Staking Process for UNIT Tokens:

No Charges for Staking/Unstaking:

Users can stake and unstake their UNIT tokens without any charges or fees, providing flexibility and accessibility to the staking process.

28-Day Unbonding Period:

Upon initiating an unbonding request, users' locked UNIT tokens enter a 28-day unbonding period.

During this period, tokens do not accrue any rewards, ensuring a fair waiting period before withdrawal.

After the 28-day period, users can withdraw their tokens into their wallet, enabling liquidity while maintaining a balanced staking ecosystem.

Claiming Daily Rewards:

Users are required to claim their bond staking rewards daily to receive them.

Rewards must be claimed within 7 days of issuance to prevent forfeiture.

If rewards are not claimed within the stipulated timeframe, they revert to the bond staking pool, ensuring efficient distribution and utilization of rewards.

By adhering to these conditions, users can stake their UNIT tokens, unlock them after a 28-day unbonding period, and claim their daily rewards within 7 days of issuance, ensuring a seamless and rewarding staking experience.

Unit Tokens Bond Staking Reward Schedule:

APY (Annual Percentage Yield):

Fixed at 10%, meaning users will earn 10% of their staked amount as rewards annually.

Provides a predictable and attractive return on investment for UNIT token holders engaging in bond staking.

Staking Pool:

Initially set at 200 million UNIT tokens.

Represents the total pool of tokens available for distribution as rewards to stakers.

Determines the maximum amount of rewards that can be earned collectively by participants.

Unbonding Period:

Set to 28 days, requiring users to wait for this duration after initiating an unbonding request to withdraw their staked tokens.

Ensures stability and fairness in the staking ecosystem by imposing a reasonable waiting period before withdrawal.

Pool Depletion:

The rate at which the pool diminishes is influenced by the number of users staking.

More stakers lead to faster pool depletion, potentially reducing the individual reward amount.

Encourages early participation and contribution to maximize reward potential.

Reward Distribution:

Tokens obtained from bond staking rewards are promptly transferred to users' wallets.

Ensures immediate access to earned rewards, promoting transparency and trust in the staking process.

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.

Provides flexibility for users to manage their staked assets while maintaining the integrity of the staking mechanism.

Claiming Rewards:

Users can claim bond staking rewards daily.

Allows participants to regularly receive rewards for their contributions, enhancing engagement and incentivizing continued participation.

Additionally, users have the option to re-stake their rewards, enabling 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.

Note:

Bond Staking Availability and Flexibility:

Available for All Tokens:

Bond staking is open to all tokens generated on the Unit Network.

Provides an inclusive opportunity for token holders to participate in staking activities regardless of the token type.

Administrator Discretion:

Token administrators have the authority to set the fixed Annual Percentage Yield (APY) within the range of 1-30%.

Enables administrators to adjust staking parameters according to network dynamics, market conditions, and token-specific factors.

Unbonding Period Definition:

Administrators can define an unbonding period ranging from 0-28 days.

Allows for customization of the staking process to align with the token's characteristics and the preferences of the community.

User Contribution Flexibility:

Users retain the flexibility to contribute additional tokens to a bonding pool at their discretion.

Encourages active participation and engagement from token holders, enhancing the overall liquidity and stability of the staking ecosystem.

Empowerment of Token Administrators:

This setup empowers token administrators to tailor staking parameters according to the unique requirements of their tokens and community.

Provides administrators with flexibility and control over the staking process, facilitating effective governance and management of the network.

User Empowerment and Participation:

Offers users the freedom to choose their level of participation in bond staking based on their preferences and investment goals.

Fosters a versatile staking environment that accommodates diverse user needs and promotes widespread adoption of staking mechanisms within the Unit Network.

Token Registration Process for Bond Staking:

Provide APR (Annual Percentage Rate):

Token owners specify the Annual Percentage Rate (APR) for rewards, ranging from 1-30%.

APR determines the annualized rate at which rewards are distributed to users staking their assets.

Specify Unbonding Period:

Token owners define the unbonding period, ranging from 0 to 28 days.

Users must wait for this duration after initiating an unbonding request before withdrawing their assets.

Determine Initial Reward Amount:

Token owners decide the initial reward amount paid out to users staking their tokens.

Initial rewards are drawn from the token's bank and transferred to the reward pool for users to claim.

Transfer Initial Rewards to Reward Pool:

Token owners transfer the determined initial reward amount from the token's bank to the reward pool.

The reward pool serves as the source from which users can claim their rewards for staking.

Accept Token Donations:

Users can donate tokens to the reward pool post-token registration.

Donated tokens contribute to increasing the reward pool, allowing for higher rewards distribution among stakers.

Once these steps are completed, the token is registered for bonding, enabling users to commence staking their assets. Staking rewards are earned based on the specified APR, unbonding period, and initial reward amount set by the token owner.