Profit Distribution and Epoch Structure
Epoch-based Profit Distribution
The profits from the protocol’s revenue streams are divided every week at the end of each epoch. An epoch is defined to be a week, and profits for any given epoch are paid if one maintains one's stake into the end of that respective epoch. What would be incentivized herein is participation consistently, given that one has to be in for the entire duration of the epoch; early withdrawal before the end of the epoch will result in the loss of profit for that particular week.
Early Withdrawal Consequences
The participant who decides to withdraw their stake before the end of an epoch would forfeit the profits for that period. This ensures users are committed to the lock periods they pick, thus stabilizing and making the staking pool more predictable.
The new staking mechanism within the WINR Chain speaks volumes about how the previous mechanism was improved, with the offering of superior rewards for long-term participation, increasing flexibility within staking options, and increasing the element of transparency and directness in incentive alignment. Setting up fixed lock periods, weight-based profit distribution, and clearly showing the way to migrate from Arbitrum heralds a new benchmark for staking within decentralized gaming ecosystems that WINR Protocol introduces.
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