I propose a penalty rate of 1.25% per week. This equates to a 4% 5% penalty for a 4-week early withdrawal, and all SPS tokens subject to the penalty will be permanently burned.
That is still just a 1.25% fee on overall tokens withdrawn. Way too low in my opinion. Abuse will take place as noted in your edit. However I do like the idea but the fee needs to be substantially higher. 5% fee on all and any withdrawals made using this "quick cashout" feature would be the lowest I would recommend. Could even go a little higher than 5% and hand a portion over to the @sps.dao treasury.
Ex. 6% straight fee on any tokens withdrawn using the quick cashout feature/ no wait period so no need to count weeks with 2% going to the treasury and 4% burned.
Some might think 5-6% fee is high but it isn't considering we need the fee high enough to fight abuse. We also need it high enough that its worth implementing (enough SPS gets burned in the process). If the fee is too little there will be no reason not to use the feature anytime SPS slightly pumps thus putting immediate sell pressure on the token (sellers should be charged a premium for this). Due to the low fee I will have to vote no.
Edit:
Ex. If I cash out 100 SPS / 25 a week using the current system and get charged 1% for doing so that is 1% on 25 and the same 1% fee on the next three 25 weekly cashouts. That still equals to a fee of 1 SPS or 1% of the total cashout amount. . A minimum of a straight 5% fee would be much more reasonable. Just because the fee takes place over 4 weeks doesn't mean it compounds to 4/5%. Unless I'm missing something here;