⚖️Loyalty Program - Staking Mechanism

Long-term commitment

1. Rewards Mechanism: Participants who remain loyal to the realm by holding and staking $LAKE and/or xLAKE tokens earn additional tokens as rewards. A higher proportion of rewards might be given to those staking xLAKE due to its non-transferrable nature, bringing long-term investors an added layer of trust and security.

2. Staking Pools: There will be separate pools for $LAKE and xLAKE tokens. Besides, a pool for $LAKE-xLAKE LP tokens can be created, offering even higher rewards to incentivize liquidity provision.

3. Vesting: Vested staking is employed to prevent the exploitation of high rewards. This locks the tokens and rewards for a predetermined period of 15 days to 6 months. This aligns with our tokenomics, driving long-term utility and stable growth.

4. Dynamic Reward Rates: The reward rates should be dynamic based on the amount of total staked tokens. As more tokens get staked, the reward rate can decrease gradually. This encourages early staking and maintains a sustainable yield.

5. Staking Tiers: To add a touch of chivalry and gamification, different staking 'Tiers' are established. The more tokens a user stakes, or the longer they stake for, the higher their 'Knight's Rank.' Higher ranks come with added benefits, such as early access to new features or increased voting power in governance.

6. Governance: Staked xLAKE can be used for governance voting, enhancing the project's decentralization while simultaneously increasing the vested token's utility.

7. Withdrawal Fees & Bonus: To discourage frequent unstaking, a small fee is implemented for unstaking within a specific period (e.g., less than 1 month from the staking date). Conversely, long-term stakers might be rewarded with a loyalty bonus.

With this approach, staking not only becomes a source of yield for token holders but also positions them as integral players in the platform's long-term success - much like knights loyal to their King and kin.