Slashing Stake
Before you stake IBS, understand the exit mechanics. Unstaking carries a Co-Building Fund Tax — not a punishment, but a mechanism that ensures every exit strengthens the protocol rather than extracting from it.
- Unstaking IBS carries a Co-Building Fund Tax paid in USDT — funds the POTS bid pool
- Linear Unlock = lower tax rate vs Immediate Unlock
- Tokens in unlock queue stop compounding — only staked tokens continue to earn
- Every exit contributes to the protocol, not just extracts from it
The Problem Slashing Solves
High APR with no exit cost is a promise no protocol can keep forever.
- Early stakers accumulate inflated rewards
- They exit, draining the liquidity pool
- Later participants hold devalued tokens
- Protocol reopens bonds → cycle repeats
- Unstaking is a deliberate, committed act
- Every exit funds the POTS bid pool
- POTS distribution becomes more equitable
- Protocol grows stronger with every exit
Co-Building Fund Tax
When you unstake IBS, a percentage of the unlocked value is paid as a tax in USDT. This tax serves one purpose: funding the POTS bid pool.
Your staked IBS is automatically enrolled in the PBM (POTS Bid Module) — the auction that distributes POTS governance tokens to the ecosystem. When you exit, the tax contributes to the same auction pool you've been participating in. Staking is co-building, not passive investment.
Linear Unlock = lower tax rate. The protocol rewards patience — not just in yield, but in exit costs too. Once unlock begins, those tokens stop compounding immediately. Only staked tokens continue to earn.
Two Valid Paths
Neither choice is wrong. Both serve the protocol. The tax ensures exiting contributes rather than extracts.
Keep Capital Working
When your staking package expires, you can restake to continue compounding — no exit required.
Slashing Questions
What stakers ask before committing capital.