Metronome
  • Metronome Synth
    • Introduction
    • Treasury Management
    • Protocol Owned Liquidity
      • External Liquidity
    • The Metronome Token ($MET)
    • Metronome Synth Protocol
      • Metronome Synth Features
      • Metronome Dashboard
      • Liquidations and Collateral Factors
      • Productive Collateral
      • Supported Assets
      • Synth Marketplace
      • DeFi Ecosystem
      • Metronome Synth Mintage and Deposit Caps
    • Risks
      • Liquidation
      • Black Swan
      • Oracle Disruptions
    • Metronome Revenue Model
    • Metronome Synth Glossary
    • Contracts
  • Smart Farming
    • Introduction
    • How Does it Work?
    • Competitive Advantages
    • Step-by-Step Guide
    • Loopage
    • Auto Repay
    • Risks
    • FAQ
  • Tokenomics
    • esMET
    • Governance
      • Lock MET
        • How to Lock MET
      • Early Unlock
        • How to Unlock MET
    • Trading Fee Discount
  • Contract Overview
    • Liquidation
    • Pool
    • Fees
    • Rewards
  • Metronome 2.0
    • Introduction
    • MET Tokenomics
    • Metronome DAO
      • Voting and Participation
      • Treasury Management
      • Metronome Improvement Proposal (MIP) Template
    • FAQ
    • Glossary
  • resources
    • Official Links
    • Brand Assets
    • Metronome 1.0
Powered by GitBook
On this page

Was this helpful?

Export as PDF
  1. Tokenomics
  2. Governance

Early Unlock

PreviousHow to Lock METNextHow to Unlock MET

Last updated 1 year ago

Was this helpful?

Within DeFi, early unlock fees are a common mechanism designed to motivate users to remain engaged with the ecosystem. In the context of Metronome, should users opt to unlock their $MET tokens before the end of their designated lock-up period, they would incur an early unlock fee. This penalty initiates at 50% and decreases in a linear fashion as time elapses, reaching 0% by the end of the lock-up period. Any fees amassed from this penalty are redirected to the Metronome DAO Treasury. This is a systematic release, adhering to the following conditions:

Penalty: If users choose to unlock their tokens early, they will face a penalty determined by the linear decaying formula up until their original unlock period ends. Essentially, the longer a user waits into their lockup period, the smaller the penalty will be when withdrawing.

Example:

Let's say you locked your $MET for 1 year, but after 6 months, you decide to withdraw them early.

Given the penalty decreases linearly from 50% to 0% over the course of the lock duration (1 year in this case), at the halfway point (6 months), your penalty would be 25%.

If you had locked 100 $MET, you'd pay 25 $MET as a penalty for unlocking them early.