Power Down Process

The power-down option allows users on the Social AI platform to gradually withdraw their powered-up, staked tokens (POWER) over a specified duration. This feature gives users flexibility and control over their token holdings, allowing them to manage their investments and participation on the platform.

DURATION AND GRADUAL PAYOUT DETAILS

When users initiate the power-down process, their tokens will be locked for a predetermined period. Our platform has a power-down duration of 13 weeks (91 days). During this period, the user will receive equal payments, once per week, of 1/13th the value of their power down.

The gradual payout ensures a controlled release of the tokens, minimizing the potential market impact. It prevents sudden influxes of tokens into the market and allows for a more balanced distribution over time. A portion of the powered-up tokens will be released to the user's wallet each week until the entire power-down duration is completed.

IMPACT ON VOTING POWER AND TOKEN OWNERSHIP

While the power-down process is in progress, the user's voting power and token ownership will be affected. As tokens are gradually released, the user's voting power will decrease proportionally. This reduction in voting power ensures that users actively participating on the platform hold a more significant influence in decision-making.

It's important to note that the power-down process does not affect the user's ownership of the tokens. Ownership remains intact throughout the power-down period. However, the gradual release of tokens may impact the user's ability to participate in certain activities that require powered-up tokens, such as staking or accessing certain platform features. Once the power-down duration is completed, the user's tokens will be fully available, and their voting power will be restored to its original level.

Social AI promotes a balanced and controlled token distribution process by implementing the power-down option. This mechanism allows users to manage their investments, participate in the platform's governance, and maintain a healthy ecosystem where active users hold significant influence while ensuring a gradual release of tokens to minimize potential market disruptions.

SPECIAL NOTE: THE POWER-DOWN PROCESS AND POWER-ONLY REWARDS

Please note that the power-down process applies specifically to users who have powered up their tokens within the Social AI platform. These users have staked their tokens to earn additional POWER, providing them with various platform benefits and privileges.

However, it is important to highlight that once the maximum token supply of $SAI is reached, the reward pool will transition to rewarding users in POWER only. At this stage, users will continue accumulating POWER as a reward for their contributions and activities on the platform. Still, these POWER rewards cannot be powered down to tokens unless additional tokens become available.

This distinction ensures the stability and integrity of the platform's ecosystem while maintaining a clear separation between the powered-up tokens and the power-only rewards. Users who receive power-only rewards can still benefit from the increased voting power and other privileges associated with POWER but will not have the option to convert those rewards into tokens unless the platform introduces additional token supplies in the future.

The power-down process provides flexibility and control for users who have powered up their tokens, allowing them to withdraw their stake gradually. However, it's essential to understand that power-only rewards operate under a different mechanism and cannot be powered down to tokens unless specific conditions are met.

Power-Down Mechanism Model

Power-Down Function PD(t)

The Power-Down Function represents the number of tokens released to the user at each payout interval during the power-down period.

Where:

• (T) is the total amount of tokens the user decides to power down,

• (N) is the total number of payout intervals (e.g., 13 weeks),

• (t) is the current interval (week).

Total Tokens Released Function TR(t)

The Total Tokens Released Function calculates the cumulative total of tokens released to the user up to the current interval.

Note: This assumes equal payments for each interval, (t) ranges from 1 to (N).

Remaining Voting Power Function VP(t)

The Remaining Voting Power Function determines the user's remaining voting power after each payout based on the tokens that have yet to be released.

Where (VP0) is the initial voting power before the power-down process begins.

POWER-ONLY REWARDS CONSIDERATION

This model does not directly integrate power-only rewards, as these rewards do not convert back into tokens and thus do not undergo the power-down process. However, their existence influences the overall ecosystem, especially regarding voting power and platform engagement.