What is Time-Lock?
A smart contract mechanism that restricts access to tokens for a predetermined period.
Time-Lock Explained
A time-lock is a smart contract feature that locks tokens for a specified duration, preventing withdrawals until the lock period expires. Time-locks are used to align incentives between protocols and users, encouraging long-term participation over short-term speculation. In Floops, the dynamic time-lock adjusts based on market cap, starting at 120 days and decreasing to 0 as the protocol grows.
Key Characteristics
- Prevents immediate token withdrawals
- Aligns long-term incentives
- Can be fixed or dynamic (like Floops)
- Often used in vesting schedules
Real-World Example
When you stake FLPS at a $100K market cap, your tokens are locked for 120 days. If the market cap reaches $500M before your lock expires, new stakers only face a 60-day lock.
Related Terms
Frequently Asked Questions
What does Time-Lock mean?
A smart contract mechanism that restricts access to tokens for a predetermined period.
How does Time-Lock work in DeFi?
A time-lock is a smart contract feature that locks tokens for a specified duration, preventing withdrawals until the lock period expires. Time-locks are used to align incentives between protocols and users, encouraging long-term participation over short-term speculation. In Floops, the dynamic time-lock adjusts based on market cap, starting at 120 days and decreasing to 0 as the protocol grows.
Can you give an example of Time-Lock?
When you stake FLPS at a $100K market cap, your tokens are locked for 120 days. If the market cap reaches $500M before your lock expires, new stakers only face a 60-day lock.
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