Staking Penalties

Gamified Ecosystem

The only penalties in the MAXX Ecosystem come from Early or Late withdrawals.

Early Withdrawal

If a user decides to withdraw their stake early, they will be penalized an amount of their principal+interest earned so far.

The penalty amount is proportionate to the time remaining / original duration of the stake.

For example, if the stake is 100 days long, but the user has only served 80 days and unstakes early with 20 days remaining, they will lose 20% of their Principal+Interest.

Late Withdrawal

Once a stake reaches maturity, the user has a 14-day grace period to withdraw their stake without any penalty. If for some reason, they do not withdraw it until a later date, they will be penalized depending on how late it is withdrawn.

The penalties start on day 15 after maturity, at a rate of 100/365 (0.273972602739726)% per day.

What happens to these penalties?

50% of Early/Late withdrawal penalties is sent to the MAXX Vault

50% is instantly burned (send to the 0x00..dEaD address), adding to our deflationary measures.