Economics

Staking and Voting

Staking keys is a core part of the protocol, enabling keyholders to govern the Trading Fund and receive their share of the profits.

CRITICAL RULE: The 24-Hour Lock

You must be staked for more than 24 hours to be eligible for:

  • Voting on distributions
  • Receiving your share of a distribution

If you are not staked for >24hrs when a distribution occurs, you will receive nothing.

Staking Mechanics

Staking

Keyholders can stake their keys using the /stake command.

  • Command: /stake (stakes all keys) or /stake 2 keys (stakes specific amount).
  • Activation Time: Eligibility for voting and rewards begins 24 hours after the moment you stake.

Unstaking

Keyholders can unstake their keys instantly using the /unstake command.

  • Command: /unstake (unstakes all keys).
  • Consequence: Unstaking immediately revokes your voting power and resets your eligibility timer. Your votes will automatically revert to "Hold".

Voting & Distribution Process

The Trading Fund distribution is a community-driven event. It does not happen automatically; the keyholders must vote for it.

1. Voting

Eligible keyholders (staked >24hrs) can cast their vote using the /vote command.

  • /vote distribute: "I want to close open positions and take profit now."
  • /vote hold: "I want to keep the funds trading." (Default state)

Note: Once you vote, you cannot change your vote for another 24 hours.

2. The Majority Threshold

A distribution is triggered only when a supermajority (2/3) of ALL keys (staked + unstaked) vote to "Distribute".

  • This high threshold ensures that distributions only happen when there is strong consensus among keyholders.

3. Distribution Event

The moment the 2/3 threshold is crossed:

  1. Trading Stops: All open positions in the Trading Fund are immediately closed.
  2. Fees: Performance fees are paid to the Creator and Protocol.
  3. Reserve: 10% of the remaining funds stays in the Trading Fund to seed further trading.
  4. Payout: 90% of the remaining funds (after fees) are distributed proportionally to all keyholders who were staked for >24 hours.

Important: Users who were unstaked or staked for less than 24 hours at the moment of distribution receive 0 rewards.

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