How to Configure Lockup Rate in Pi Network

What is Configure Lockup Rate

In the Pi Network, the “configure lockup rate” is the percentage of your Pi balance that you choose to keep locked. Locking up your Pi means you decide to not use a part of it for a certain time. By doing this, you get a higher mining rate and better rewards for mining.

Users can lock up some of their Pi balance to get a higher mining rate. The amount of Pi locked and how long it’s locked for both affect the mining rewards. The longer you lock your Pi and the more you lock, the bigger the boost to your mining rewards.

To configure the Lockup Rate, click on Configure Lockup Rate.

Lockup Configuration

Users can choose their lockup settings, like how much to lock and for how long, at any time. This can be done even before finishing KYC or moving to the Mainnet. When transferring to the Mainnet, the balance will be split into two parts: locked balance and free balance. 

To set up the Lockup Rate, simply click the checkbox and then move on to the next step.

Lockup Duration and Percentage of Lockup

Lockup Duration:

The length of time you lock your Pi affects your mining rewards. Different lockup periods, like 2 weeks, 6 months, 1 year, or 3 years, offer different multipliers. The longer you lock your Pi, the higher the multiplier, which means better mining rewards.

Choose the duration and percentage for the lockup, then commit your choice. Once you confirm, you cannot change your decision.

Percentage of Lockup:

At first, users can lock up to 100% of their transferable balance on the Pi Network. After the Mainnet launches, users will be able to lock up to 200% of their transferred balance, including any extra Pi earned through Pi apps.

Lock Up Mining Boost Formula

The mining boost is calculated using this formula:
L(B) = Lt • Lp • log(N) • B

Variables:

Lt: Lockup time multiplier (depends on how long you lock your Pi)

Lp: Lockup percentage multiplier (depends on how much of your balance you lock)

N: Number of mining sessions (this is a logarithmic factor)

B: Base mining rate, which changes based on the available Pi pool.

This formula gives more rewards to users who have locked their Pi for longer periods and locked a higher percentage of their balance, leading to better mining rewards.

Non Reversible Action

Once you confirm the lockup, it cannot be undone. The locked amount must remain locked for the entire time you chose. This is a part of how the blockchain is designed.

Reason Behind Lockup Rate Theory

The lockup system is meant to encourage users to stay involved with the Pi Network for the long term. It helps support the network’s economy and manage the supply of Pi, especially in the early stages of Mainnet.

The Pi Network focuses on utility-based transactions, like buying and selling goods and services, instead of speculative trading. This approach helps create a healthy and sustainable market.