Staking

Introduction

The Unit Zero Commitment Layer is the foundational staking module of the Unit Zero ecosystem. It allows users to lock their UNIT0 tokens for a period ranging from 1 week up to 4 years. In return, users receive an NFT (ERC‑721) representing their locked position, called cUNIT0 (Committed UNIT0). The NFT carries a Commitment Score that reflects the user’s long‑term commitment.

Protocols built within the Unit Zero ecosystem can read this score to offer benefits such as:

  • Reduced fees

  • Boosted yield multipliers

  • Priority allocations

  • Discounts

  • Airdrops


How It Works

1. Locking UNIT0

To participate, a user locks UNIT0 tokens for a chosen duration:

  • Minimum lock: 1 week

  • Maximum lock: 4 years

When a lock is created:

  • The tokens are transferred to the smart contract.

  • An NFT (ERC‑721) is minted, representing the position.

  • A Commitment Score is calculated.

2. Commitment Score

The score is the primary metric used by other protocols. It is calculated as:

Score = Amount × (Lock Duration / Max Lock)

  • Max Lock = 4 years

  • The score decays linearly over time, reaching zero exactly at the unlock moment.

Examples:

Amount
Duration
Score

100 UNIT0

4 years

100

100 UNIT0

2 years

50

200 UNIT0

1 year

50

Because of linear decay, the score decreases daily. At any given moment, the current score reflects the remaining locking time.

3. NFT Position

Each lock is represented by an NFT with the following properties:

  • Transferable – the NFT can be sold or transferred to another wallet.

  • Metadata – includes the locked amount, unlock timestamp, and current score.

  • Collateral – can optionally be used as collateral in future DeFi applications.

4. Managing Positions

Users have full flexibility to manage their locked positions.

Merge

Combine two NFTs into one:

  • The amounts are summed.

  • The new unlock time is chosen (e.g., the later of the two).

  • A single new NFT is minted, and the old ones are burned.

Split

Divide one NFT into two:

  • The amount is split proportionally.

  • Both new positions keep the same unlock time as the original.

  • Two new NFTs are minted.

Increase Amount

Add more UNIT0 to an existing lock:

  • The amount is increased.

  • The unlock time and score are recalculated (no reset).

Extend Lock

Extend the lock duration:

  • The unlock time is set to a later date.

  • The score increases accordingly.

5. Early Unlock

If a user wishes to unlock before the lock period ends, they can withdraw with a penalty:

  • Penalty rate: 80% of the locked amount.

  • The penalised tokens can be:

    • Burned

    • Sent to the treasury

    • Distributed among active holders

Early unlock is discouraged to preserve the integrity of the long‑term commitment system.


Strategic Value

The Commitment Layer brings several benefits to the Unit Zero ecosystem:

  • Reduces circulating supply – locked UNIT0 is removed from the market.

  • Forms a long‑term holder base – incentivises users to commit for years.

  • Creates a unified economic coefficient – the same score can be used across all protocols.

  • Strengthens UNIT0 value – without inflation, demand is driven by utility and locking.


High‑Level Contract Architecture

The core smart contract implements:

  • ERC‑721 (NFT)

  • Locking logic (create, increase, extend)

  • Merge & split functions

  • Linear decay calculation

  • Score view functions

  • Penalty handling

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