Conditional Liquid Staking Tokens: a Participation-based Vesting primitive
Last updated
Last updated
$AUT tokens distributed through Reputation Mining are designed to be distributed monthly (see ) and “vested” for each period’s duration (28 days).
During the Vesting period, tokens can’t be withdrawn or sold - but they can, and should, be used within Āut’s ecosystem (see )
We've designed and implemented a novel mechanism for this process, inspired by yield-bearing and restaking asset classes.
This new primitive, which we call c-LST (conditional Liquid Staking Token), allows receivers of a specific token distribution (in this case, $AUT) to use $c-AUT within secure, whitelisted dApps and contracts before the actual $AUT amount is unlocked and received.
If, at the end of the following period, the user has "staked" (= used) 60% or more of their $c-AUT, they will be able to convert the c-Token to the actual $AUT in a 1:1 ratio, and claim it.
The “burning” / conditional mechanism is a vesting process, that creates a deflationary effect, and pushes people to engage. With built-in engagement.
