# Yield Compensation Program

{% hint style="info" %}
**Historical record.** This page documents the yield compensation program from January 2026. The epoch-based system referenced below has since been replaced by continuous linear yield distribution over a 7-day cycle. See [Yield Distribution Schedule](/protocol/yield-distribution-schedule.md) for the current model.
{% endhint %}

### Overview

In early January 2026, we identified issues with how yield was being distributed to early sUSX stakers. We're committed to making this right.

**All compensation was distributed by 16 January, 2026.** This page explains what happened and how we compensated affected users.

#### What Happened

When USX launched in November 2025, our smart contract had limitations in how it tracked and distributed yield:

1. **Partial Reporting Period:** Our first yield report on 16 December 2025, only covered 12 days of performance (17-30 November 2025) instead of a full month.
2. **Extended Distribution:** The contract was configured to distribute this partial yield linearly over 30 days, completing on 16 January 2026.
3. **Missing Blend Yield:** Yield from our on-chain strategies (Blend) was not included in early distributions.
4. **Early Exit Impact:** Users who unstaked before 16 January 2026, will miss out on yield they had rightfully earned during their staking period.

#### Who Is Affected

| Group                                            | Situation                                 | What We're Doing                                         |
| ------------------------------------------------ | ----------------------------------------- | -------------------------------------------------------- |
| **Early Unstakers**                              | Withdrew between 17 Nov - 15 Dec 2025     | Full compensation for missed yield                       |
| **Recent Unstakers who are pending withdrawals** | Withdrew between 16 Dec 2025 - 9 Jan 2026 | Compensation for the gap between actual and earned yield |
| **Current Stakers**                              | Still holding sUSX                        | Lump-sum compensation on 16 January 2026                 |

#### Compensation Timeline

**All compensation will be distributed on January 16, 2026.** This includes users who have already unstaked, pending withdrawals, and current stakers.

If you're affected, you'll see the compensation in your wallet on January 16.

#### How Compensation Is Calculated

Your compensation equals what you should have earned minus what you actually received on-chain:

```
Compensation = True Earnings - Actual On-Chain Yield
```

**True Earnings** are calculated based on your actual balance and staking duration, minus the standard 10% protocol fee.

#### What's Changed

To prevent similar issues, we've made immediate and long-term fixes:

#### Immediate Fix

* **Distribution period changed from 30 days to 1 day** - Yield is now distributed daily instead of over 30 days, eliminating the early unstake penalty

#### Temporary Solution

As an temporary fix, we implemented an epoch-based distribution system:

* Twice-monthly distributions instead of monthly
* Two-week staking epochs for predictable deposit and distribution cycles
* Transparent lockdown periods so all stakers earned yield fairly

This system has since been replaced by the current continuous linear distribution model.

#### Questions?

* Check our [FAQs](https://docs.usx.capital/resources/faqs) for common questions
* Join our [Discord](https://discord.gg/scroll) for community support

*Transparency and fairness are core to USX. We're committed to making this right and ensuring it doesn't happen again. Thank you for your patience and trust.*


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