If the penalty was bigger I think I could vote for it but 4% is almost nothing. 15-25% is the range id look at if you wanted to avoid the 4 week unstaking process
You are viewing a single comment's thread from:
If the penalty was bigger I think I could vote for it but 4% is almost nothing. 15-25% is the range id look at if you wanted to avoid the 4 week unstaking process
I think 15-25% will make no one use it, or very few people. It's true there are protocols that charge nearly or even upwards of 50% penalty for a maximum stake early withdraw, but those protocols may also have 1-2 year staking periods.
For now, I am happy increasing the proposed fee to 5% and see how that goes
I think it's 4% or 5% per week. So, Let's say I unstake 100k SPS (25k per week), if I quick unstake on week 1, that's 4% * 4 [weeks] = 16% = 16000 SPS penalty
I may be wrong but that was my understanding.
If it was 5% all throughout, then I do agree that it is too low and the minimum should be around at least 10% for the whole 4 weeks. Then put 5% burned and 5% transferred to DAO for other projects.
I agree with @hewitt 5% is waaaaaayyyy too low. That's not even an inconvenience. Having the ability to unstake without waiting can cause massive dumping, and a negative snowballing affect on the token price. That is why unstaking over 4 weeks reduces the downward pressure of a token and spreads it out over a longer period of time as to not destabilize the price action. The point of an early unstake fee is to make them FEEL THE PAIN of unstaking early if they really want it that bad.@cryptoeater I'm not against this proposal but I think it needs some tweaking.
20-25% seems reasonable to me. You REALLY need to want those tokens, to unstake and loose 25%. 🤑 If the market pumps and SPS goes to stupid high prices, the amount of burning that will happen near the top will be legendary... AND cause a snowball deflationary event to the token.🔥 LOL