> ## Documentation Index
> Fetch the complete documentation index at: https://docs.thewolfshead.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Escrow Tokenomics & the Vesting Gate

> The 10:1 Reserved Capital Lockup rule, vesting streams, and slash mechanics

To convert synthetic esWOLF rewards into liquid, sellable WOLF, users interact with `VestingPortal.sol` — **"The Alpha's Cut."**

## Vesting gate validation

```mermaid theme={null}
flowchart TD
    A["User requests vest:<br/>100 $esWOLF"] --> B{"10:1 Capital Rule<br/>Is 1,000 $WOLF staked<br/>in The Den?"}
    B -->|PASSED| C["Freeze 1,000 $WOLF<br/>as collateral"]
    C --> D["Start linear vest stream"]
    D --> E["Claim liquid $WOLF<br/>as it unlocks"]
    B -->|FAILED| F["Reject transaction"]
```

## The 10:1 Reserved Capital Lockup rule

To eliminate mercenary yield farming (e.g., farming large rewards, unstaking core capital, and vesting with a dust balance), the contract enforces a strict collateral requirement:

```text theme={null}
Required Reserved $WOLF = Amount of $esWOLF to Vest x 10
```

* To vest 100 esWOLF, the user must keep 1,000 WOLF frozen in `TheDen.sol` for the entire vesting duration.
* Users choose between a **1-Week Hyper-Loop** or a **1-Month Linear Stream**.

## Early exit penalty & slash mechanics

<Warning>
  If a user attempts to unstake their reserved core WOLF capital prior to vest completion, **The Pack Law applies.**
</Warning>

```mermaid theme={null}
flowchart TD
    A["User withdraws reserved<br/>collateral early"] --> B["Active vesting stream<br/>instantly cancelled"]
    B --> C["Unvested $esWOLF slashed:<br/>burned or returned to treasury"]
    B --> D["User reclaims core $WOLF collateral<br/>+ any already-vested rewards"]
```

1. The active vesting stream is instantly cancelled.
2. Unvested esWOLF rewards are slashed and permanently burned (or returned to the treasury pool).
3. The user reclaims their core WOLF collateral plus any rewards that completed vesting prior to cancellation.