👮‍♂️Investor Protection Mechanisms

Innovative Tokenomic Safeguards

At Z Protocol, protecting our investors' interests is our top priority. Our commitment to safety and investor confidence is reflected in the advanced tokenomic mechanisms we've integrated into our framework. These mechanisms are designed not only to innovate but also to maintain the integrity of our ecosystem.

Rigorous Safeguards

Our investor protection mechanisms are practical, adaptable, and governed by Z Protocol's configuration. Each safeguard undergoes a thorough process anchored by a Timelock protocol, requiring team approval and advanced communication with the community before implementation.

Harvest Lockup & Reward Vesting: Mitigating Short-Term Instability

Z Protocol’s farming platform employs strategic measures to prevent frequent harvesting and reduce the immediate impacts of inflation. This approach protects against manipulation by bots or users attempting to exploit APRs through rapid harvesting and dumping of ZP tokens, which could otherwise harm token value.

Harvest Lockup Period

For instance, the ZP/ETH farm features a Harvest Lockup period of 6 hours. Participants can only initiate a Harvest every 6 hours, promoting a balanced and sustainable ecosystem by preventing rapid fluctuations.

Strategic Reward Distribution

Our Vesting Program complements the Harvest Lockup. Z Protocol farmers can immediately claim 50% of their rewards, but doing so results in the other 50% being permanently burned. Alternatively, the locked portion can be claimed anytime within the 30-day lockup period without the risk of burning. This system offers flexibility while ensuring ecosystem resilience.

These measures highlight Z Protocol's dedication to creating a functional and enduring ecosystem. By implementing these protective mechanisms, we actively mitigate short-term volatility and foster steady growth.