Executive Summary
This page describes the deterministic contract-level mechanics governing how LPT transitions between bonded and unbonded states, how rounds are processed, and how rewards are checkpointed and claimed.
All mechanisms described here operate strictly at the protocol layer (on-chain).
1. Core State Variables
Let:
- = total LPT supply at round
- = total bonded stake
- = bonded stake attributed to participant
- Round = discrete accounting epoch managed by the protocol
Rounds form the atomic accounting unit for issuance and reward distribution.
2. Bonding
Bonding is the act of locking LPT into the staking contract to participate in protocol rewards and governance.
When participant bonds amount :
Bonded stake contributes to:
- Reward eligibility
- Governance voting weight
- Security participation
Bonding is recorded in the BondingManager contract.
3. Delegation Attribution
If delegator bonds to orchestrator :
Delegators retain ownership but delegate reward rights and voting weight attribution.
4. Unbonding
Unbonding initiates a withdrawal period.
When participant unbonds amount :
The stake enters a pending withdrawal state subject to an unbonding period measured in rounds.
During this period:
- Stake does not earn rewards
- Stake cannot be immediately transferred
This delay protects against rapid stake-based manipulation.
5. Round Lifecycle
Each round includes:
- Inflation calculation
- Reward distribution eligibility
- Checkpoint processing
Round transition is triggered by protocol timing logic.
Issuance per round:
Supply update:
6. Reward Checkpointing
Rewards are not automatically transferred; they must be checkpointed.
Checkpointing updates participant reward balances according to stake weight.
Allocation to orchestrator :
Delegator share:
Checkpointing updates internal accounting state before withdrawal or rebonding.
7. Claiming and Rebonding
Participants may:
- Claim rewards to liquid balance
- Rebond rewards (compound stake)
Rebonding increases and thus future economic weight.
8. State Transition Diagram
9. Security Implications
Mechanisms that protect protocol integrity:
- Unbonding delay - reduces short-term manipulation
- Round-based accounting - deterministic reward cycles
- Stake-weighted allocation - capital-backed security
10. Protocol vs Network Separation
Protocol (On-Chain):
- Bonding/unbonding logic
- Round transitions
- Reward issuance
- Stake attribution
Network (Off-Chain):
- Job execution
- Performance
- Fee generation
Mechanics described here are entirely on-chain.
References
Last modified on March 20, 2026
