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esMETA, Vesting & Re-staking
Meta can be staked to get esMETA tokens. It has the same value as META and is subject to the total supply cap of META. esMETA cannot be traded or transferred but has voting rights and can share in protocol earnings.
esMETA can be obtained by staking META, minting mUSD or by providing liquidity to META/ETH pool and mUSD/2Pool.
esMETA holders can convert their esMETA to META through a vesting process. Minimum and maximum period of vesting is 10 and 60 days respectively. There is a 50% penalty for vesting in 10 days, which reduces to 0% if vested over 60 days (and linear in between).
As such, Vesting has an in-built deflationary mechanism to burn esMETA (and subsequently, META) tokens to reduce total circulating supply in the ecosystem.
Meta has built flexibility in case esMETA holders change their mind and want to cancel vesting.
Users can cancel their vesting and re-stake unclaimed META tokens to esMETA.
On doing so, vesting penalty is reverted on unvested esMETA and unclaimed META tokens. esMETA balance will be updated as if no penalty was applied at the time of vesting.
If you have claimed vested META tokens, then it will only be able to revert penalty on unvested esMETA and unclaimed META tokens.