RE: Unstake SPS Early with Penalty
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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
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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 5% is still to low. Some people dont even get outta bed for 5% (shark tank joke)
I just feel like if someone really wants to avoid the 4 week wait they should pay a penalty, 5% is a processing fee not a penalty. I think the minimum I could support is 2.5% per week for a total of 10%.
Its a tough cookie to crack tbh because you honestly dont want a ton of people using it because if they are that probably means things arent going well. One of the best things about SPS is the amount locked up IMO. You dont see a ton of projects with over 50% of its supply out of circulation and thats not even including the unstaked amount we have in the Dao.
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.
@cryptoeater I'm not against this proposal but I think it needs some tweaking. 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.
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