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Retention Pressure

commitment-reinforcing protocol mechanic

Retention Pressure refers to the system-wide incentives, deterrents, or psychological cues that encourage users to hold, stake, or remain active within a protocol over time. It can be designed through mechanics like progressive rewards, loyalty-based unlocks, behavioral deterrents, or loss of access for inactivity. The goal is to reduce churn, stabilize capital, and foster deeper alignment between protocol goals and user behavior.

Use Case: A staking platform implements time-weighted yield boosts that reset if users withdraw early. This creates retention pressure, as unstaking forfeits future compounding advantages and tier-level benefits—motivating longer engagement.

Key Concepts:

Summary: Retention Pressure helps shape a healthy ecosystem by encouraging users to stay through strategic reward pacing and well-placed friction. Rather than forcing commitment, it subtly motivates long-term thinking, protocol loyalty, and sustainable capital flow.

Retention Mechanism Primary Tactic Churn Risk User Impact
Retention Pressure Time-Based Incentives Reduced Loyalty Encouraged
Open Withdrawal No Friction High Users Exit Easily
Hard Lock Mechanism Fixed Term Lockups Low During Lock Reduced Flexibility

 
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