# Staking Rules

## How it works and what to expect

We have two options, to start with we will do a simple rewards based dynamic staking method. where users stakes $GTM and receives more $GTM.&#x20;

Later on, we will add a staking 2.0 with more functionally and then a staking 3.0 as the project develops. (some info on the upgrades below)&#x20;

## Locking Period <a href="#locking-period" id="locking-period"></a>

The $GTM project introduces a locking period mechanism designed to enhance the project's financial stability and reward committed participants. With a significant Annual Percentage Yield (APY) on offer, this feature plays a pivotal role in aligning user behavior with the project's long-term prosperity.

## **How It Operates:** <a href="#how-it-operates" id="how-it-operates"></a>

A 10-day locking period is applied to a user's staked $GTM  tokens. This timeframe is selected to provide a balance between rewarding users and maintaining token supply predictability. The locking period is reset to 10-days from the time of any action that changes the user's staked balance, including:

* Staking more $GTM  tokens
* Claiming staking rewards
* Withdrawing staked tokens

### **Automatic Re-staking and High APY: ( Staking 2.0 - Out later )**  <a href="#automatic-re-staking-and-high-apy" id="automatic-re-staking-and-high-apy"></a>

To capitalize on the high APY returns, claimed rewards are automatically re-staked, which both enhances the user's future earning potential and resets the locking period for the total staked amount. This mechanism is crucial due to the generous returns offered, ensuring that the benefits are geared towards users who are invested for the longer term.

### **Automatic Re-staking upon Withdrawal: ( Staking 2.0 - Out later )**  <a href="#automatic-re-staking-upon-withdrawal" id="automatic-re-staking-upon-withdrawal"></a>

A unique feature of our staking protocol is the automatic claim function during a withdrawal. When a user decides to withdraw any amount of their staked $GTM tokens, any outstanding rewards are automatically claimed and re-staked. Consequently, these newly staked rewards will start earning APY immediately, but the entirety of your remaining staked balance will be subject to the locking period requirements.

### **Example Scenario: ( Staking 2.0 - Out later )**  <a href="#example-scenario" id="example-scenario"></a>

If User A chooses to withdraw 100 $GTM  from their staked balance of 500 $GTM , and there are 50 $GTM  in unclaimed rewards, the following occurs:

* The 50 $GTM rewards are claimed and automatically re-staked.
* User A receives 100 $GTM  (400 staked - 100 withdrawn).
* The total staked amount is now 450 $GTM  (remaining 400 + 50 rewards).
* A new 10-day locking period applies to the entire staked balance of 450 $GTM  from the time of withdrawal.

### **Rationale Behind the Locking Period: ( Staking 2.0 - Out later )**  <a href="#rationale-behind-the-locking-period" id="rationale-behind-the-locking-period"></a>

The locking period is instituted for several strategic reasons, notably:

1. **Market Stability:** It mitigates market volatility by discouraging the immediate sale of newly claimed tokens, which could otherwise lead to price instability.
2. **Long-term Investment Incentive:** The reset of the locking period encourages holders to remain invested, aligning with the project's goals of sustainable growth and long-term value creation.
3. **Maximizing Returns:** With high APY returns, the automatic re-staking of rewards ensures that participants fully benefit from the compound interest effect, increasing their incentive to stay invested.

By carefully considering the interplay between high APY returns and the locking period, the $GTM  project aims to create a robust economic model that rewards loyalty and promotes a stable investment environment.
