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Yes it affects entire blockchain.. all frontend would have payout decline.

That's what I'd have thought, but it doesn't show as declined on InLeo, whereas on PeakD it clearly does. I guess what shows up on Leo simply won't pay out after the 7 days (it's just hypothetical) and return to zero.

Unless leo is doing something on layer 2 code to move away from 7 day payout .. we can't say. But most likely your theory is right it just stays as number.