CHI SYSTEM (UPGRADE)

CHI is introduced in Phase 2 as the core participation weighting system.

It determines how staking emissions are distributed.

CHI-Shares are the unit that determines a participant’s share of staking emissions. At stake start, CHI-Shares are minted from the stake principal, adjusted by lock duration and size bonuses, and divided by the current CHI Share Rate.

Rewards are distributed pro rata based on active CHI-Shares, not raw token amount. The CHI Share Rate only moves upward, making early and longer commitments more structurally valuable over time.

CHI Definition

CHI represents a user’s proportional share of the staking system.

It is a dynamic value calculated based on:

• token amount

• lock duration

• time held

• participation consistency

CHI Behaviour

• CHI increases over time for active participants

• Early exit reduces CHI efficiency

• Long-term positions accumulate disproportionate weight

CHI does not create tokens.

It only determines how emissions are distributed among participants.

Reward Distribution

User rewards are calculated as:

(user CHI / total CHI) × staking emission pool

Only the staking allocation (50% of emissions) is distributed via CHI.