Penalties & Deflation

Early Withdrawal Penalty (Real-Time Decay)

Staking MONSTRO applies a 2-year, real-time, per-second decaying penalty.

• At the moment you stake, the maximum penalty is 75%.
• Every second, the penalty decreases.
• At exactly 2 years, the penalty reaches 0%.

If you withdraw early, the penalty applies only to the amount withdrawn.

Penalty Distribution

All penalty amounts are automatically split:

• 50% burned (permanently removed from supply)
• 25% sent to the DAO treasury
• 25% added back to the emissions pool

This design makes early exits beneficial to long-term holders and extends system longevity.

Expired Allocation Burns

Auto-stake allocations (from past Monstro products and brands) have fixed claim windows:

• 6 months for Whelps, HV, MasterBrews
• 12 months for Lazarus Pit and Monstro

Unclaimed allocations move into an Expired Allocation Pool.
Anyone can trigger the distribution once available.

Distribution uses the same formula:

• 50% burned
• 25% treasury
• 25% emissions refill

This prevents unused allocations from ever becoming circulating supply.

No Minting, No Inflation

MONSTRO uses a strict fixed-supply model:

• No mint function
• No inflation
• No transfer taxes
• No hidden supply changes
• Deployment ownership renounced

Supply can only decrease, never increase.

What Drives Deflation

Deflation occurs entirely through natural user behavior:

• Early withdrawals → penalty burns
• Expired auto-stake allocations
• Optional voluntary burns
• Future DAO burn proposals

There are no forced burns, no gimmicks, and no artificial market manipulation. Only transparent, predictable, on-chain events.

Summary

MONSTRO becomes increasingly scarce over time through:

• A 2-year real-time decaying penalty
• Burn events from expired allocations
• A fixed supply with no minting
• Penalties feeding the emissions pool and treasury

As the ecosystem grows, so does the rate at which penalties and expiries contribute to long-term deflation.