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Converting esASX into ASX with penalty
For users who don't want to wait through the entire vesting period and wish to convert their esASX to ASX sooner, this option is available but with an associated penalty. This penalty (the amount of esASX losed by a user for exiting the vesting period early) doesn't just sit in the protocol's contracts. Instead, it becomes available for all users to purchase at a 50% discount (see details below).
In the "My esASX Vesting" section, you can view the progress of your esASX tokens that you have sent for transformation into ASX, on a 1:1 ratio basis.
If you don't wish to wait, simply click the "CONVERT EARLIER WITH PENALTY" button and confirm the action in the pop-up window that appears. Detailed information will also be displayed, showing how much esASX you will lose due to early conversion.
How is the Penalty Calculated?
- Example 1: If a user holds 1000 esASX in vesting for 10 days out of 100 (10% of the total time), then linear vesting would yield 100 ASX that they can claim over those 10 days. They can also convert the remaining 900 but with a penalty. They will get 10% of 900 as ASX to claim (90 ASX), and the remaining 90% is deducted as a penalty (810 ASX).
- Example 2: If a user holds 1000 esASX in vesting for 85 days out of 100, they would accumulate 850 ASX for claim over those 85 days based on linear vesting. The remaining 150 can also be converted to ASX but with a penalty. They will get 85% of 150 as ASX to claim (127.5 ASX), and the remaining 15% is deducted as a penalty (22.5 ASX).