Vested Rewards
Rewards allocated to the following protocols incentive programs are subject to a vesting mechanism:
Staking $HEDGE via the mHEDGE framework,
Holding an active Position
Providing Liquidity HEDGE/WMONAD or HEDGE/USDT
Using a Strategy which mHEDGE voters have channeled incentives into
*NFT staking and Referral rewards are not subject to rewards vesting and are paid out in $HEDGE tokens directly as opposed to mHEDGE.
The rewards vesting mechanisms works as follows:
Rewards are initially paid out in the form of mHEDGE, these rewards can be converted into $HEDGE anytime at a ratio determined by the time-lock penalty.
The time-lock penalty decays until a full 12 month period elapses. At this point mHEDGE becomes $HEDGE at a 1:1 ratio.
Time-locked mHEDGE is considered staked and will continue to accrue additional rewards until the user claims into $HEDGE or after the 12 month time-lock period has elapsed.
For $HEDGE stakers, their mHEDGE rewards will be compounded directly into their mHEDGE staking positions. Note that mHEDGE earned as rewards will be converted back to $HEDGE in a manner that is separate than the principal mHEDGE that was minted through $HEDGE staking directly. See Unlocking mHEDGE for additional details.
Time-locked mHEDGE rewards are equivalent to mHEDGE minted via the $HEDGE staking mechanism in the context of VIP tiers qualification.
Users can claim their mHEDGE into $HEDGE at any time, however they will incur conversion penalties of up to a 97% loss (if within 1st month) versus holding for the entire period. The penalty decays using a quadratic formula, therefore the user's rewards become exponentially larger the longer they wait. Full time-lock penalty schedule is below:
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