Staking Vault

The GEN Staking Vault (GSV) is the mechanism through which GEN holders obtain governance rights. It is a separate, optional protocol feature, not inherent to token ownership. The distribution of staking rewards is fully automated and executed by a smart contract, with no manual intervention. Staking incentives are denominated in the native token GEN and distributed in two phases: an eight-year genesis period followed by a post-genesis phase.

During the genesis period, the protocol allocates 420,000,000 GEN (20% of the total token supply) to staking rewards in order to accelerate early adoption and promote a broad distribution of governance power. Genesis-phase rewards are subject to a two-year halving schedule. This non-linear, front-loaded incentive structure is designed to compensate early participants for the augmented risk assumed during the early stages of protocol development.

Cycles	Years	Total Rewards	Annual Rewards
1	1-2	224,000,000	112,000,000
2	3-4	112,000,000	56,000,000
3	5-6	56,000,000	28,000,000
4	7-8	28,000,000	14,000,000

In the post-genesis phase, staking incentives are funded exclusively through Treasury-generated yield, with part of the revenue used to purchase GEN on the open market for staking rewards.

In both the genesis and post-genesis phases, staking rewards increase to a 1.5x multiplier after six months and a 2.0x multiplier after twelve months of consecutive staking. Staked tokens become eligible for withdrawal after 30 days of continuous staking, at which point governance rights vest, preventing exploitative short-term capital inflows and discouraging opportunistic behavior.