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 Distribution Formula) 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During the Vesting period, tokens can’t be withdrawn or sold - but they can, and should, be used within Āut’s ecosystem (see Token Utility)
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.
