Escrow and Vesting
Kwenta token information
- All $KWENTA rewards (staking or trading) are subject to a 12-month escrow.
- Escrowed $KWENta can be staked and will continue to earn staking rewards.
- After a 12-month lock, $KWENTA can be vested.
If a staker wants to vest their $KWENTA immediately, a 90% early vest fee is applied, which diminishes linearly over the 12-month period. The potential early vest fee on escrowed KWENTA can be found under the Escrow tab.
Once you claim staking rewards, you will have escrowed Kwenta. Escrowed Kwenta is easily managed within the Kwenta Staking UI by navigating to the Escrow tab on the staking dashboard:
All inflationary rewards and trading rewards earned on Kwenta are locked for a period of 1-year. This means that rewards will be in
Escrowuntil the 1-year timer expires. Our “burn to vest” model makes escrowed rewards available immediately, but if vested early, any remaining % is returned ("burned") to the Kwenta treasury. The early vests fee starts at %90 and goes down linearly over the course of a year.
While your escrowed KWENTA tokens vest over one year, they can also be staked to accrue additional inflationary rewards. In order to do so, escrowed Kwenta has to be staked on the Escrow tab (see box #2 below). Staked escrowed KWENTA can also be used to vote in Kwenta governance.
Here you will find your Escrow entries. Anytime a Kwenta staker claims rewards an entry is populated within this table. Information in this table includes:
- Date - The date the rewards were originally claimed
- Time Until Vestable - Time until rewards for the specific claim entry are fully vested (0% early vest fee)
- Immediately Vestable - Amount of KWENTA you would receive if vested now, already including the early vest fees
- Amount - Total amount of KWENTA claimed for a specific escrow entry
- Early Vest Fee - Shows the amount of KWENTA forfeited if vested early
- Vesting - The vesting timer has not expired; an early vest fee still applies
- Vested - Escrow complete; rewards are 100% vested and have no fee to vest
Since escrow tokens are stakeable, they can be used to vote in elections as well as capture additional rewards. In this entry field, stakers can choose to stake or unstake their escrowed KWENTA.
When vesting escrowed KWENTA, staked escrowed Kwenta will be automatically unstaked and vested. There is no need to unstake escrowed KWENTA first.