YAT Reward Claiming Process

The process of claiming the YAT reward.

YAT is an ERC20-compatible token. After its issuance and before its maturity, users can freely trade a YAT. However, once a YAT matures, it becomes non-transferable. A holders of YATs can claim rewards from the project based on the amount of YATs the holder holds during the staking period of the YATs.

As shown in the figure, to claims the rewards of YATs, a user should take the following steps:

1. After staking BTCs to secure a PoS chain in the Babylon ecosystem, the PoS chain will distribute rewards to the Lorenzo account based on the rewarding mechanism it promises.

2. Once the YAT issued by Lorenzo matures, the rewards will be transferred in a lump sum from Babylon to the Lorenzo appchain through an IBC bridge and stored in the Lorenzo_Reward_Module.

3. The user can claim rewards based on the amount of YATs the holder holds. YATs will be burnt in proportion to the issued rewards.