Deep dive into incentive campaigns

This page covers the mechanics behind the incentive rewards you earn through Incentivized Liquid Staking: the reward modes a campaign can use, how lockups and early-exit penalties work, what happens to your rewards when you unstake, and the claim fee. For the step-by-step claiming guide, see How to claim.

For the validator-side view of how campaigns are created and funded, see Incentive Programs.

What you earn

Your rewards depend on the campaign's reward mode:

• Fixed campaigns pay a guaranteed rate per unit held. Your yield is predictable and does not change when others join or leave. See Fixed Campaigns.
• Proportional campaigns split a fixed reward among all participants by share. Your yield floats: the more participants, the thinner each slice, so joining early means earning more. See Proportional Campaigns.

A per-campaign amount cap lets you limit how much of your direct stake participates in a given campaign. You can use it to split your stake across several campaigns of the same validator, or to exclude your own stake from receiving rewards.

Lockups

Some campaigns include an optional reward lockup that rewards you for staying committed and discourages farming a reward for a few days and leaving. Here is how it works:

• Your lock re-arms every time you add stake. Your first stake, a top up, or rejoining after you left all reset it to the full lock period from that moment. Staying put lets the timer run down; adding more re-commits your whole position.
• Leaving early costs you, and the penalty always goes to the protocol treasury, never the campaign owner. There are two ways to trigger it:
  • Pulling stake before the lock ends takes a slice of what you have earned so far, scaled by how much you pulled and how early.
  • Claiming before the lock ends takes a cut of that claim that shrinks to zero as the lock matures. Claim on day one and it is near the maximum; claim at maturity and it is nothing.
• Your claim is never blocked. A penalty only lowers the payout, it never stops you from withdrawing. Waiting always costs less, and at or after maturity you keep 100%.

WARNING

If a campaign has a lockup, check the lock period and maximum penalty before you exit or claim early. Waiting for the lock to mature avoids the penalty entirely.

What happens when you unstake

When you reduce or withdraw your stake from a validator:

The change is reported

The JPool delegate detects the change and reports your new, lower or zero amount to the incentive campaign.

Accrual stops for the removed portion

Accrual stops for the removed portion immediately. You stop earning on stake you no longer hold.

Earned rewards are yours

Everything you earned up to the moment of the report stays in your position and can be claimed at any time. Reducing your stake never forfeits already earned rewards, unless the campaign has an active lockup and you pull out early, in which case an early exit penalty applies (see Lockups).

You enter an exited state

If your held amount drops to zero, you enter an exited state: no longer earning, but your unclaimed rewards remain available.

Your position is closed

Once you have claimed everything, the delegate closes your position and recovers the rent.

INFO

Your earned rewards stay available indefinitely, even if you fully unstake. You can claim them days or weeks later. They are never clawed back.

Fees

A protocol fee (a percentage set by the JPool admin) may be applied to each claim and sent to the protocol treasury. The fee is reserved alongside the reward, so it never affects your earned amount or the campaign's ability to pay. If the fee is zero, no treasury transfer occurs.