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Stake, Lock, Burn, & More

Participation Mechanics

The Moats provide multiple ways for users to participate in and support a token ecosystem. Through staking, locking, and burning, participants can choose different levels of commitment while accumulating Moat Points and earning rewards.

Each participation method carries a different multiplier within the Moat Points system, allowing users to decide how they want to balance liquidity, time commitment, and long-term conviction. These actions directly influence reward distribution within a Moat.

The following sections outline how staking, locking, burning, and related mechanics function within the Moats App, as well as how Moat Points are calculated and used to determine participation weight.

Stake

Users can stake tokens and earn rewards.

  • Tokens can be unstaked at any time.

  • Staking earns a 1x multiplier in the Moat Points system.

Lock

Users can lock tokens for a fixed period to earn higher rewards.

  • Lockups can last up to 730 days.

  • Longer lockups earn higher multipliers (2x to 5x).

  • Multiple lockups per account are enabled.

  • Locked tokens cannot have their lockup durations extended either.

  • Locked tokens must either be served to completion or a user can select Emergency End Lock, which incurs a fee.

Lockup Multipliers Table

Days
Multiplier
Percentage

1

2.11x

211.10%

7

2.29x

229.38%

30

2.61x

260.82%

60

2.86x

286.01%

90

3.05x

305.34%

120

3.22x

321.68%

180

3.49x

348.97%

240

3.72x

372.01%

365

4.12x

412.13%

450

4.36x

435.54%

540

4.58x

458.02%

600

4.72x

471.98%

660

4.85x

485.25%

700

4.94x

493.77%

729

5.00x

499.79%

730

5.00x

500.00%

Lockup Multipliers Graph

Emergency End Lock (EEL)

Users who need to withdraw locked tokens early can use the Emergency End Lock feature.

  • Early exits apply a penalty on the locked tokens.

  • The penalty decreases as more of the lock period is completed.

Emergency End Lock (EEL) Penalty Table

% Lock Completed
Penalty on Locked Tokens

<10%

95%

10%

90%

20%

80%

30%

70%

40%

60%

50%

60%

60%

50%

70%

40%

80%

30%

90%

20%

>90%

10%

100%

0%

Burn

Users can burn tokens permanently to earn the highest multiplier.

  • Burning sends tokens to the Dead Address and cannot be reversed.

  • Burned tokens earn a 10x multiplier in the Moat Points system.

  • Burning is optional but designed for users who want to maximize their participation rewards.


Moat Points

Moat Points are an internal tracking system used by Moats App to determine the most active participants in each Moat. They form the core of the reward and distribution mechanism.

Moat Points are siloed to each Moat. Points earned in one Moat do not carry over or apply to any other Moat on the platform.

Moat Points use multipliers from staking, locking, and burning to award points based on participation. Each action in a Moat affects the number of points earned:

Action
Multiplier
Description

Staking

1x

Base participation

Locking

2x–5x

Depends on lock duration

Burning

10x

Permanent multiplier

Example: Burning 100,000 BENSI in a Moat provides the same number of Moat Points as staking 1,000,000 BENSI due to the 10x multiplier.

Moat Points are calculated using a formula that takes a user’s staked points × multiplier, locked points × multiplier, and burned points × multiplier. The square root of the sum of these three values is taken, then normalized to a 1 billion supply for each Moat. This helps keep leaderboard numbers manageable and makes the points spread feel approachable for new users.

Formula:

Moat Points = normalize(sqrt((Staked × MS) + (Locked × ML) + (Burned × MB)))

Example: Burning 100,000 BENSI in a Moat provides the same number of Moat Points as staking 1,000,000 BENSI due to the 10x multiplier.

Relationship to Reward Distribution

Moat Points directly determine how rewards are distributed within a Moat.

This creates a fully transparent system where participation directly maps to rewards.

Example: 1a) Burning 100,000 BENSI in a Moat provides the same number of Moat Points as staking 1,000,000 BENSI due to the 10x multiplier.

1b) If a user holds 1% of total Moat Points, they receive 1% of all rewards emitted by that Moat.

Supply-Based Point Behavior

Moat Points are calculated relative to the total supply of the underlying token used in the Moat. Because of this, the way points behave depends on the token’s supply structure.

Fixed Supply Tokens Tokens with a fixed or capped supply generate static Moat Points. Once points are earned from staking, locking, or burning, they remain constant unless the user changes their position.

Dynamic Supply Tokens Tokens with inflationary, uncapped, LP, rebasing, or otherwise dynamic supplies generate dynamic Moat Points. Since the underlying token supply can change over time, Moat Points may adjust proportionally to maintain a consistent relationship between participation and total supply.

This design ensures Moat Points remain fair and proportional across tokens with different monetary models.

Time-Weighted Moat Points

Moats can optionally enable time-weighted Moat Points, which build directly on Static Moat Points. Rather than only reflecting a user’s current position, time-weighting rewards consistency and duration of participation.

When enabled, Moat Points include both a user’s current position and accumulated carry-over from prior epochs.

Epoch-Based Time-Weighted (ETW)

ETW calculates a user’s average Static Moat Points over a fixed 1-week epoch, then applies a carry-over bonus to reward sustained participation.

How it works:

  • Snapshots Static Moat Points (from staking, locking, and burning) are recorded multiple times per day

  • Weekly Average At the end of each epoch, all snapshots are averaged to determine the user’s Static Moat Points for that week

  • Carry-Over Bonus A percentage of the weekly average is carried into the next epoch as additional Moat Points

  • Compounding Effect Carry-over bonuses accumulate over time, increasing a user’s Moat Points the longer they maintain their position

Important: Only Static Moat Points are used to calculate each new weekly average. Carry-over is applied on top and does not compound itself. A user who maintains their position earns a larger share of rewards than a user with the same Static Moat Points who frequently exits and re-enters.

Example

Week
Base Avg (Moat Points)
10% Carry-Over
Total Carry-Over (10%)
Effective Points (10%)
75% Carry-Over
Total Carry-Over (75%)
Effective Points (75%)

1

100

0

100

0

100

2

100

10 → applied

10

110

75 → applied

75

175

3

100

10 → applied

20

120

75 → applied

150

250

4

100

10 → applied

30

130

75 → applied

225

325

5

100

10 → applied

40

140

75 → applied

300

400

6

100

10 → applied

50

150

75 → applied

375

475

7

100

10 → applied

60

160

75 → applied

450

550

8

100

10 → applied

70

170

75 → applied

525

625

9

100

10 → applied

80

180

75 → applied

600

700

10

100

10 → applied

90

190

75 → applied

675

775

Notes:

  • Carry-over percentage is set by the admin and can only be one value per moat (e.g., 10% or 75%)

  • A 0% carry-over means points remain static (no carry-over applied)

  • Underlying stake/lock/burn of the position remains unchanged over the 10 weeks in this example

  • Total Carry-Over sums all previous weeks’ carry-over.

  • Effective Points = Base Average + Total Carry-Over.

ETW rewards sustained participation over multiple weeks through compounding bonuses.

Disabling Time-Weighting

Admins can enable or disable time-weighted systems at any time. When a time-weighted system is disabled, the Moat immediately reverts to static Moat Points based solely on current staking, locking, and burning positions. Any compounded ETW carry-over bonuses are removed when the system is turned off. While admins have the flexibility to switch between weighted and static systems, frequently doing so may confuse users and make Moat Point accumulation less predictable.


Fees

A 0.5% fee is applied to unstaking and unlocking across all Moats. This discourages short-term position cycling and promotes longer-term participation.

All Moats follow a standardized fee structure covering deposits, withdrawals, and Emergency End Lock (EEL) penalties.

When an Emergency End Lock is triggered, 95% of the forfeited tokens are burned to 0xDead and 5% is collected as a protocol fee, in addition to standard unstaking or unlocking fees. This structure makes EEL penalties deflationary for the underlying token rather than a liquidity drain.


Miscellaneous

Moats App Early User Airdrop

The Early User Airdrop will use the platform-wide Moats App Platform Score (MAPS) to track participation on the platform.

  • MAPS: Aggregates a user’s Moat Points across all Moats to measure overall activity and engagement.

    • MAPS are time-weighted. This means MAPS are distributed to users based on a weighted average of Moat Points accumulated across every verified Moat a user participates in.

      • Each Moats unique underlying weight is proprietary.

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