Unbond(a.k.a. Exit) Mechanisms

Instant Exit vs. Linear Exit

iOS holders have two exit options:

Instant Exit:

• iOS can be instantly unbonded to OS at any time

• 50% penalty applies (1 iOS = 0.5 OS)

Linear Exit (Vesting):

• 6-month linear vesting option available

• Can be canceled during the first 14 days after vesting starts

• iOS in vesting cannot vote and does not receive rebase rewards

Exit Penalties and Distribution Method

Exit penalties are distributed to remaining participants in the system:

• Distribution Mechanism: Forfeited OS tokens are distributed proportionally to iOS stakers based on their share

• Distribution Method: Penalties can be claimed during the next epoch

PVP Rebase

We call this exit penalties redistribution as "PVP (Player vs Player) Rebase":

• Dilution Protection: Stakers are partially protected from dilution through early exit penalties from other users

• Natural Value Concentration: Ownership naturally concentrates among users who value it most over time

• Incentive Alignment: The structure rewards longer stays with more rewards, promoting long-term participation.