Penalty

Within the UNIRA DeFi ecosystem, specific conditions trigger penalties for token holders. Every $UNIRA holder must adhere to the Activity Mandate, or they risk incurring penalties as outlined below:

Penalty Structure for Non-Compliance:

1. First Occurrence: Should a token holder fail to meet the Activity Mandate, a 10% penalty tax will be applied to their total UNIRA token holdings. This initial penalty serves as a gentle reminder of the importance of active participation within the community.

2. Second Occurrence: Subsequent instances of non-compliance will lead to a more impactful 20% penalty tax. This escalation underscores the protocol's commitment to consistent engagement and interaction.

3. Third Occurrence: Should a token holder persistently disregard the Activity Mandate, a substantial 40% penalty tax will be enforced. At this stage, the protocol takes decisive action by converting the user's UNIRA tokens into ETH. As a result, the wallet will exclusively contain ETH, leaving the token balance at 0 UNIRA tokens. This step underscores the paramount significance of genuine token involvement.

In summary, penalties within the UNIRA DeFi protocol are designed to reinforce active engagement and uphold the ecosystem's vibrancy. The penalty structure acts as a safeguard, ensuring that token holders are motivated to maintain their commitment to the protocol's success.

**The penalty % might change based on future DAO governance proposals.