Introduction to Locked Staking

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Locked staking on Haven1 allows users to lock their esH1 tokens to earn rewards and to be able to participate in governing the Haven1 network. This is designed for users who are willing to lock their tokens in exchange for higher rewards and greater influence within the Haven1 ecosystem through governance participation.

How Locked Staking Works

  1. Initiating a Lock: Users can choose to lock their esH1 tokens by going here. Once on the page, you can select a duration that suits your investment strategy, anywhere from one week up to four years. Once locked, these tokens cannot be unstaked until the end of the chosen period.

Note: Lock periods are standardized to begin each Thursday. For example, if you initiate a lock on Tuesday, the countdown will officially start from the coming Thursday. Our user interface is designed to clearly display your lock and unlock dates before you finalize your transaction, ensuring transparency and understanding.

  1. Earning Rewards: The rewards for locked staking are typically higher than those available through flexible staking. These rewards are not only in the form of H1 tokens but may also include other tokens active within the Haven1 ecosystem. Rewards accrue from both the issuance of new H1 tokens and revenue generated from all core protocols on Haven1.

  2. Claiming Rewards: While the principal amount remains locked, the accrued rewards can be claimed at any time. Claiming these rewards incurs a standard application fee of $1 worth of H1.

  3. Unstake: Users will only be able to unstake these tokens once the lock period is over. They can go over here to track the exact date of unlock.

  4. Governance Participation: Upon locking their tokens, users receive veH1 proportional to the amount and duration of the esH1 locked. This token grants users the power to vote on governance proposals, influencing the development and policies of the Haven1 platform.

    1. As your locked period diminishes, so does your veH1, decreasing your voting power gradually. This mechanism ensures that governance influence is aligned with current stakeholder commitment. Examples:

      1. Users who lock 100 esH1 for 4 weeks earn 4 times the voting power as the users who lock 100esH1 for 1 week

      2. Users who initially earned 100veH1 power after locking the tokens for 4 years would have the voting power decay to 75veH1 after 1 year.

  5. Adding to an Existing Lock: Users can add more esH1 to their existing lock at any time. This addition will adhere to the original lock's expiration date and cannot initiate a new lock period.

  6. Increasing your lock duration: A user can always increase the lock duration up to a maximum of 4 years to earn more rewards and to be able to increase your voting power

Application Fees

  • Claiming Rewards Fee: There is a $1 fee in H1 tokens for each reward claim to cover transactional costs on the blockchain. To minimize transaction fees and maximize your returns, consider aggregating your rewards for a few days before claiming. This strategy reduces the frequency of transaction fees while allowing your rewards to accumulate.

Locked Staking Benefits

  • Higher Rewards: Due to the committed nature of locked staking, the rewards are significantly higher compared to flexible staking, aligning with the increased risk of longer-term token lockup.

  • Increased Governance Influence: The veH1 tokens provide users the ability to influence the platform's direction through active participation in governance decisions.

  • Security and Stability: By locking tokens, users help maintain the stability and security of the Haven1 network, reducing the circulating supply and potential market volatility.

Key Considerations

  • Irreversible Commitment: Once esH1 is locked, it cannot be unlocked until the term expires. Users should consider their liquidity needs and risk tolerance before opting for locked staking

  • Governance Engagement: Holding veH1 merits users to be proactive in participation, as these tokens grant them voting rights in Haven1โ€™s governance processes. Stay engaged with Haven1 governance by regularly reviewing upcoming proposals by going here and participating in discussions. Your vote counts significantly towards shaping the future of Haven1.

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