Penalties & Deflation

MONSTRO’s supply naturally decreases over time through on-chain mechanics, without taxes, minting, or artificial gimmicks.

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If you withdraw early, the penalty applies only to the amount withdrawn.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

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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.

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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.

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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.

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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.