1.5 Unstaking and Its Effect on Post-Delegate Rewards

It is important to distinguish between the initial mining rewards and the second-layer delegate rewards that will be introduced once Delegates are active.

The daily mining rewards allocated to each Founder or Partial Node are fixed by smart contract and are not affected by unstaking. Each node continues to mine its allocated supply over 540 days, regardless of whether the owner later stakes, unstakes, or delegates additional $CASH.

The mechanism described below applies only after the Delegate layer goes live, when staking $CASH in active Founder Nodes begins generating secondary network rewards (from platform fees, activity yield, and delegated staking operations).


Effect of Unstaking (Only in the Delegate Reward Phase)

Once Delegates are operational, users who hold $CASH may choose to stake their tokens to a Founder Node to earn additional rewards from network activity. In this phase:

  • Staked $CASH increases the reward weight of a Delegate Node

  • Unstaking reduces that reward weight

Therefore:

  • If a user unstakes in this phase, the reward share of that particular node decreases

  • This reduction impacts only the post-mining Delegate rewards, not the fixed daily mining

This ensures that Delegate rewards reflect active commitment, while the initial node-based mining remains stable, predictable, and unaffected.


Summary

Reward Type
Source
Affected by Unstaking?
Notes

Initial Node Mining Rewards

Fixed 540-day smart contract emission

❌ No

Always distributed daily regardless of staking changes

Delegate Layer Rewards

Network fees + staking yield after Delegates go live

✅ Yes

Reward share adjusts based on staked $CASH


Why This Is Designed This Way

This structure:

  • Maintains stable, guaranteed mining rewards for every node holder

  • Encourages long-term staking participation once Delegates are active

  • Prevents large holders from destabilizing reward distribution

  • Supports healthy decentralization and predictable network growth

Last updated