In the Pool Party game, lockup periods are implemented in order to incentivize long-term commitment and discourage short-term speculation. The lockup period is the duration of time that a player cannot withdraw their tokens from a Pool. This is designed to help stabilize the Pool and ensure that there is sufficient liquidity available for all players throughout the game.
In the game, players have 8 hours to stake their tokens in Pool 1 or Pool 2. Once the 8 hour period has elapsed, the tokens are locked for a period of 16 hours. This means that players cannot withdraw their tokens from the Pool for the next 16 hours after the staking period. After this lockup period, the tokens become available for withdrawal.
It's important to note that players are allowed to hop from one Pool to another at any point during the lockup period, but there is a 1% fee for doing so during the locked phase. Outside the lockup phase, Pool hopping incurs a 0% fee. This fee is designed to discourage players from constantly switching pools and to encourage long-term commitment to a single Pool. This fee also helps to stabilize the pools by reducing the frequency of players switching between them.
There is no lockup period for Pool 3. This is because Pool 3 is designed to incentivize players to provide liquidity to the Pool by staking their $PARTY-ETH LP tokens. The rewards earned in Pool 3 are distributed via rebasing at a random time each day, so there is no need for a lockup period to ensure liquidity. However, players must keep their tokens staked for 24 hours before they are eligible to receive rewards. If a player unstakes their tokens before the 24 hour period is over, the player's reward claim will be reset back to zero.