Staking Loyalty Curves
time-weighted reward scaling based on commitment duration
Staking Loyalty Curves are progressive yield structures that increase user rewards the longer they remain staked. These curves reward duration rather than just volumeÔÇötransforming staking into a loyalty signal and aligning users with the protocolÔÇÖs long-term sustainability goals. Curves may be linear, exponential, or milestone-triggered, and are often paired with reset penalties or forfeiture rules to discourage early exits.
Use Case: A DeFi platform applies a Staking Loyalty Curve where users start at 8% APR. After 30 days, this increases to 12%, and after 90 days, to 18%. Unstaking at any point resets the curve, reinforcing consistent long-term behavior as the most rewarded.
Key Concepts:
- Reward Multipliers ÔÇö Core mechanism used to increase APR as staking time progresses.
- Reset Penalty Systems ÔÇö Leaving early resets the curve and forfeits accrued bonuses.
- Compound Loyalty Curves ÔÇö Layer multiple curve types together across yield, governance, and access tiers.
- Cycle-Resilient Incentive Structures ÔÇö Designed to perform across market volatility and liquidity churn.
Summary: Staking Loyalty Curves reward consistency over speculation. By scaling benefits based on time stakedÔÇönot just amount stakedÔÇöthey turn passive holding into a strategic behavior loop that builds deeper alignment between users and the protocolÔÇÖs mission.
| Curve Type | Reward Behavior | Exit Consequence | Loyalty Signal |
|---|---|---|---|
| Linear | Steady APR Increase | Curve Resets | Moderate |
| Exponential | Yield Accelerates with Time | High Forfeiture Risk | Strong |
| Tiered | APR Jumps at Milestones | Lose Access to Higher Tiers | Very High |