Locked Staking

This document details how users can lock esH1 for upto 208 weeks to earn enhanced rewards as well earn governance rights on the network proportional to their stake

You can try out the product here

Locked staking allows you to lock your esH1 tokens to earn rewards and to be able to participate in governing the Haven1 network. This is for you if you are willing to lock your tokens in exchange for higher rewards and greater influence within the Haven1 network through governance participation.

How Locked Staking Works

1. Initiating a Lock: First, you have to can choose to lock your 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. If you want to stake using H1 tokens, you would have to convert them to esH1 first.

Note: Lock periods are standardised to begin each Thursday. You will start earning rewards from next Thursday onwards.

For example, if you initiate a lock on Tuesday, the countdown will officially start from the coming Thursday(in 2 days). 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 network. Rewards accrue from both the issuance of new H1 tokens and revenue generated from all applications that charge an application fee on Haven1 network.

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

   1. IMPORTANT NOTE: You get back the token you used for locked staking. If you used your esH1 in locked staking, you get back esH1 after the lock period is over.

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

   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. If you lock 100 esH1 for 4 years(max of 208 weeks), you get 100 veH1 starting the next epoch(Epoch starts every Thursday at UTC)

      2. If you lock lock 100 esH1 for 4 weeks, you will earn 4 times the voting power versus if you lock 100 esH1 for 1 week

      3. If you have initially earned 100veH1 power after locking your esH1 tokens for 4 years. your voting power will decay to 75veH1 after 1 year.

5. Adding to an Existing Lock: You can add more esH1 to your existing lock at any time. This addition will adhere to the original lock's expiration date and will not initiate a new lock period. Again, the increase in rewards and voting power will occur the Thursday immediately after you do this action.

   

   Here’s how to maximize rewards and influence by added more esH1

6. Increasing your lock duration: You 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

Here’s how to maximize rewards and influence by extending your commitment.

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 you the ability to influence the platform's direction through active participation in governance decisions.

• Security and Stability: By locking tokens, You 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. You should consider your liquidity needs and risk tolerance before opting for locked staking

• Governance Engagement: Holding veH1 merits you to be proactive in participation, as these tokens grant you voting rights in Haven1 network's governance processes. You should 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.