Party Rules
The Party Portal is where all PartyNode Parties can be accessed.
When the term 'Party' is used, it refers to a voting/loan period where FAVOR Token holders can stake on Party Hosts (node operators) in support of their loan proposals. In other words, a FAVOR Staker becomes a Party to the Node Operator by "co-signing" a Host's loan.
To join a Party, one must hold a Party Pass NFT.
Party Passes unlock FAVOR Staking (voting) - enabling a holder to join a Party.
FAVOR stakers can vote for or against a Party Host's loan proposal.
If approved, the FAVOR Tokens staked in favor of a Party Host are locked until the loan is repaid.
The FAVOR tokens against the proposal are immediately redeemable by the stakers after approval.
If the proposal fails, all FAVOR tokens are immediately redeemable by all stakers.
If the loan defaults, the FAVORs staked in favor of that Host are slashed/burned to cover the loss.
A verified Party Pass holder can participate in an unlimited number of Parties. Limited only by the amount of FAVOR tokens available in a given Party Pass.
Individual yield (interest earned from the loan) is determined by how many FAVORs are staked on any single Host proportional to the total amount staked on said Host.
Once a loan is fully repaid, the staked FAVOR tokens are unlocked and holders can allocate them towards other Parties and/or burn some/all for a portion of the interest earned from said loan.
All unclaimed interest is pulled back into the PartyNode DAO. Interest may go unclaimed if FAVOR holders choose to instead keep their FAVOR tokens.
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