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UNFI Token Classification Guide

Upgrade your UNFI for more rewards!

UNFI Token Classification

UNFI tokens are held in one of 4 possible classes. Class 4 tokens are the lowest and default status, moving all the way up to Class 1 tokens which possess the highest amount of GGM privileges. Holders of UNFI may upgrade their UNFI tokens to higher classifications by taking the voluntary actions of staking and delegating. As UNFI tokens are upgraded, they gain access to more DAO governance privileges and earn increasing rewards.

The 4 Classifications for UNFI

Class 4 — Holder (Default Status)

In order for UNFI tokens to be moved from one blockchain address to another, they must be in class 4. Therefore any earned UNFI rewards, or UNFI sent or traded into a new address are class 4 until an action is taken by the holder to upgrade the token. Class 4 tokens:

  • Can be traded or sent to a new blockchain address with no change in status
  • Are not eligible to vote on GGM referendums
  • Are not eligible to propose a GGM referendum
  • Are not eligible for Staking Rewards
  • Are not eligible for Delegating to Council Representatives
  • Do not count towards Community Rewards for Council Representatives

Class 3 — Waiting Period

Class 4 Holder tokens can be upgraded to class 3 tokens by staking them. Once staked, UNFI tokens enter a Waiting Period before they become eligible to earn rewards. Class 3 tokens:

  • In order to trade or transfer Class 3 tokens to another blockchain address they must first be downgraded to Class 4 by unstaking them.
  • Are not eligible to vote in GGM referendums
  • Are not eligible to propose GGM referendums
  • Are not eligible for Staking Rewards
  • Are not eligible for delegating to Council Representatives
  • Do not count towards Community Rewards for Council Representatives
  • Do not have an Unstake Waiting Period

Class 2 — Upgraded

UNFI tokens that remain staked through the class 3 Waiting Period upgrade to Class 2 and begin to earn Staking Rewards. Class 2 tokens:

  • In order to trade or transfer Class 2 tokens to another blockchain address they must first be downgraded to Class 4 by unstaking them.
  • Can vote in GGM referendums
  • Are not eligible to propose GGM referendums
  • Earn Staking Rewards
  • Eligible for Delegating to Council Representatives
  • Delegation does not count towards Community Rewards for Council Representatives
  • Do not have an Unstake Waiting Period

Class 1 — Elite

UNFI tokens that remain staked through the class 2 Upgrade period and have been delegated to a Community CR upgrade to Class 1 after an amount of time. Class 1 UNFI tokens are the only delegation that count towards the election of Council Representatives, making Class 1 tokens the most valuable UNFI voting rights in the GGM. It is anticipated this will mean Council Representatives will provide their Elite UNFI delegators with rewards to encourage delegating. Class 1 tokens:

  • Can vote in GGM referendums
  • Can propose GGM referendums
  • Earn Staking Rewards
  • Count towards the election of Community Council Representatives
  • Count towards Community Rewards for Council Representatives
  • Unstaking requires an Unstake Waiting Period

Unstake Waiting Period

If Elite Class 1 UNFI tokens are unstaked, there is an unstaking period during which no transactions with those UNFI tokens can occur. After the unstake waiting period, the Elite Class 1 UNFI tokens will be downgraded to Class 4 and can then be transacted. No rewards will be earned during this unstake waiting period.

Summary Table

We hope this article was able to provide you with all the necessary information about different classes of UNFI tokens.

Unifi Protocol’s website can be found at https://www.unifiprotocol.com/. You can also connect to the Unifi community on Telegram, Twitter, or Medium. Developers — check out our bounty list to develop on the Unifi Protocol at https://gitcoin.co/issue/sesame-seed/Quest/1/100023698

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