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Conversion & Redemption
While $CRUIZE can immediately be converted to $esCRUIZE, being the escrowed token means that the redemption of $esCRUIZE back to $CRUIZE involves vesting. The conversion rate is determined by the duration of the vesting period.
$CRUIZE can be staked to convert into $esCRUIZE at any time. Converting $CRUIZE to $esCRUIZE is essentially the process of escrowing it in exchange for holder benefits and $esCRUIZE tokens represent escrowed $CRUIZE tokens. The process involves no timelock and the conversion rate is always 1:1.
Converting $esCRUIZE back to $CRUIZE through the redemption process requires vesting. The vesting process follows a standard epoch of 90 days on a rolling basis. $esCRUIZE linearly vests and converts to $CRUIZE over the 90-day period. This means that although redemptions can be requested at any time, the actual vesting process can only begin at the start of an epoch. In other words, if redemption is requested during an ongoing epoch, the vesting period actually begins at the start of the next epoch. The conversion ratio increases proportionally as the vesting period gets closer to expiry.
It is possible to exit the vesting period early by giving up the rest of the tokens that would vest in the remaining time. For example, If a user had already requested a redemption on 100 $esCRUIZE tokens and a new epoch begins today, the vesting period would also begin today. If the user then chooses to exit their position immediately after 45 days, they would get back only 50 $CRUIZE tokens since the remaining balance would vest over the remaining 45 days.
In all cases where the vesting process is incomplete, half of the unclaimed $CRUIZE tokens are burned and the rest are redistributed as rewards in the form of $esCRUIZE tokens to the remaining $esCRUIZE holders.