Duration-Based Utility
time-anchored function model
Duration-Based Utility refers to the way a token, contract, or protocol feature provides increasing benefits or enhanced capabilities based on how long a user maintains engagement, staking, or holding. This model rewards patience and commitment, often using vesting curves, tier unlocks, or progressive rights to align incentives with protocol longevity. Duration-based utility transforms time into a functional layer of value, offering utility tiers that grow with continued use or loyalty.
Use Case: A DeFi platform offers escalating governance power and boosted yield multipliers to users who lock tokens for longer periods, such as 6 months or 1 year, while shorter commitments receive reduced utility or access.
Key Concepts:
- Time-Weighted Rights ÔÇö Governance, access, or yield increase based on duration.
- Loyalty Layers ÔÇö Incentive tiers designed around sustained user engagement.
- Progressive Unlocks ÔÇö Utility unfolds over time, discouraging short-term churn.
- Commitment Incentives ÔÇö Longer participation is functionally more rewarding.
Summary: Duration-Based Utility introduces time as a core utility mechanism, aligning benefits with user commitment. It reinforces long-term protocol health by rewarding those who stay, build, or contribute over time, rather than catering to short-term extractive behavior.
| Model | Time Sensitivity | Utility Outcome | Best Use Case |
|---|---|---|---|
| Duration-Based Utility | High | Grows Over Time | Staking, Governance, Loyalty Systems |
| Flat Utility | None | Immediate, Static | Basic Access Models |
| Performance-Based Utility | Medium | Tied to User Output | Creator Rewards, Gaming |