Reward Forfeiture Models
systems that revoke unearned or prematurely accessed rewards
Reward Forfeiture Models are protocol mechanisms that cancel, reclaim, or invalidate rewards when users break staking terms, exit early, or fail to complete a required behavior streak. These models function as enforcement tools within loyalty and yield systemsÔÇöensuring that emissions are only fully distributed to aligned, long-term participants. Forfeiture doesn’t necessarily mean slashingÔÇöit often means resetting earned-but-unclaimed incentives to protect sustainability.
Use Case: A vault implements a Reward Cliff and Reset Penalty System. If a user unstakes before 30 days, all accruedÔÇöbut unclaimedÔÇöyield is forfeited and returned to the emission pool. This model rewards patience and deters extraction.
Key Concepts:
- Reset Penalty Systems ÔÇö Reset progress and bonuses for breaking behavioral alignment.
- Exit Discipline Toolkit ÔÇö Reinforces delayed gratification through forfeiture risk.
- Cycle-Resilient Incentive Structures ÔÇö Prevents protocol drainage in volatile conditions.
- Reward Multipliers ÔÇö Bonuses forfeited if streaks or minimums are broken.
Summary: Reward Forfeiture Models reinforce protocol integrity by filtering out short-term users and ensuring emissions flow only to committed participants. They introduce natural discipline into yield systemsÔÇöaligning timing, trust, and user behavior without hard locks or punitive slashing.
| Trigger Event | Forfeiture Type | Impact on User | Protocol Benefit |
|---|---|---|---|
| Early Unstaking | Unclaimed Yield Revoked | Loss of Accrued Rewards | Emission Conservation |
| Streak Broken | Multiplier Reset | Future Yield Reduced | Behavioral Reinforcement |
| Voting Inactivity | Governance Bonus Revoked | Loss of Influence Access | Governance Integrity |