Reward Cycle Penalties (Deprecated)
In certain cases, a user can be penalized by extending their reward cycle.
One case when this could happen is when a user receives/transfers more than 90% of their $XLD balance in a transaction. The duration of the extension is proportional to the increase of their balance ($XLD).
For example, if a user receives/transfers 70% of their current balance in a transaction, their cycle will be extended by 70%. This extension is capped to the base cycle duration (1 hour). This behavior was implemented to deter abusers of the cycle who buy before their cycle ends and/or sell right after receiving their rewards.
Note: This only applies if the amount transferred is equal or greater than 90% of the user's balance.
The Zero Balance Penalty:
Another case when such a penalty occurs is when a user sells 100% of their $XLD tokens and then buys back in. In this case, their reward cycle will be extended by dozens of years in the future. The only way to re-enter the base cycle after being penalized this way is to transfer all funds to another wallet.