Penalty Distribution

The 25% early withdrawal penalty is redistributed to strengthen the CipherX ecosystem:

• 60% → Staking Pool Returned to boost future staking rewards.

• 20% → Token Burn Permanently removed from circulation to reinforce the deflationary model.

• 20% → Treasury Allocated to ecosystem development, innovation, and partnerships.

Penalty-derived rewards re-enter the staking pool gradually over 30 days, distributed smoothly in a per-second flow to maintain yield stability and ecosystem resilience.