Capped Daily Withdrawals (N/A)

By default, the Capped Daily Withdrawals feature will not apply to anyone since the default Daily Cap for withdrawals has been set to a high value of 50 BNB per day.

This feature will only be used in emergency situations sparingly.

It is important to differentiate between what is and what is not an emergency situation for the purposes of this feature.

TVL falling off the cliff just because buying has stopped and selling has picked up is NOT an emergency situation since we have created other tools such as Buyer Bonus, variable Referral % and JTVL fee to tackle that. If our tools fail to jumpstart TVL, then Capped Daily Withdrawals will still NOT be used.

An emergency situation is a situation like Covid in March 2020, when everyone all of a sudden is in dire needs of funds. In these kind of circumstances, Capped Withdrawals can be activated to help preserve TVL, so money can be distributed to everyone in need. If we do not enforce this feature at that time, then the big wallets can drain TVL with nothing left over for the small investor. When situation improves, capped withdrawals will again be lifted. As an example, in 2020 this would mean Capped Withdrawals would be enforced in March 2020 and would be lifted around May 2020.

Apart from this rare emergency situation, BlockRewards will keep operating as a regular virtual miner with both winners and losers

Another important thing to note is that wallets that do get affected by Capped Withdrawals meaningfully will be compensated via other means such as priority access to new pools as a token of thanks.