Reading the white paper for a DeFi project. After paragraphs of it saying it’s not a ponzi, I read this. I’m new so maybe I’m missing something. Thoughts?

Reading the white paper for a DeFi project. After paragraphs of it saying it’s not a ponzi, I read this. I’m new so maybe I’m missing something. Thoughts?

Here’s what it said: “Furthermore, there is a 10-day lock-up period for people who want to sell their [coin] to the protocol. The period can be reduced with a 10% tax per day. This is necessary because the treasury is invested and we need to withdraw the investments to pay to investors.”

It sound like a ponzi to me, but I also barely understand most of this. I am a total newbie.

Here’s link to paper: https://medium.com/coinmonks/wand-investments-whitepaper-reconciling-safety-sustainability-and-rewards-in-defi-ba20d96213