Given the ongoing discussion related to the zilliqa staking unbonding period, I would like to suggest a proposal that would allow the ability to unstake immediately, if agreeing to forfeit 10% of Zil that holder wishes to unstake.
All Zil that is forfeited for early unstaking would be paid to gZil holders once a week, or coincident with completion of 7 Zil rewards block periods.
Abstract:
Continual complaints being voiced regarding the 14 day unbonding period for stakers.
Provide option to allow immediate withdrawal from staking (or at close of that days reward block), if the staker is willing to forfeit 10% of amount to be unstaked into a fund that will be paid to gZil holders on a weekly basis.
Pro’s -
provide those who wish to unstake an early option to do so
penalty still provides incentive to maintain long-term position and minimize volatility
provides income opportunity to gZil token to help add value and encourage participation
Con’s-
offers stakers a way out of lock-up period without any direct benefit to current Zil stakers
10% penalty suggestion could be too excessive to encourage a regular stream of gZil payments.
Motivation:
This would help resolve the on-going discussion about the lock up period. Offering those that want out immediately an option to do so, while also serving the interests of those who prefer the current lock-up period.
In addition, it will provide a much needed income opportunity to the gZil token and its token holders. This could help create demand, awareness for the gzil token, plus add additional encouragement to current holders about the income possibilities available to gZil while engaging more community members to participate.
Specification:
This initiative would be implemented in staking menu as an option to unstake immediately (or at next reward block) and forfeit 10% of tokens they looking to unstake.
The weekly rewards could then be distributed to gzil holders in similar fashion to zwap rewards, where valid gZil holders will be issued qualifying rewards at the weekly block and will have to claim them or look to Carbon tokenomics for further direction on distribution.
another impact might be that when zil under pressure with general market, gZil could be looked at possibly as place to hide for investors due to the likely increase in penalty rewards at this time. This could provide a cushion to returns during these down periods for zil
To set the expectation right, I would like to add that implementing this proposal, will require a brand new phase of staking and will not be something that can be done immediately. Duration can range at least from 3 -6 months as a complete contract rewrite, retest, reaudit, wallet partners coordination, testnet, mainnet etc are needed
A product is being developed that will have a feature very similar to what you propose here. Also in relationship to gZIL. You should be hearing an update on this in the next weeks. I suggest waiting for this.
That would be good with more options. However, providing a solution for potential investors an option to instantly withdraw with a penalty could also draw some new investors. This also potentially allow gzil holders to decide later on.
Sounds like this proposal wants Zilliqa Staking to be the same as what CARBON Staking offers. So if that is something that people want, maybe they want to consider moving over to CARBON staking until it is an option for ZIlliqa…
Carbon staking offers between 55-65% APY
10 day (aprox) bonding time
Automatic restaking (compounding)
1% bonus at end of each epoch (aprox 10 days)
Earn while unbonding
Instant withdrawal with penalty fee paid to remaining stakers
Yes, but providing a solution for potential investors an option to instantly withdraw with a penalty could also draw some new investors this will be possible rather soon (1-2 months I think). I agree more options the better but from Zilliqa Research’s side this will at least take 3 - 6 months and cost resources. Also, gZIL holders will be able to change parameters if necessary. Still working on the tokenomics for now but I think many community members will like this feature, plus the governance they will have over these types of things. To be continued…
It’s a good idea. But 3 - 6 months is very long time to develop and implementing it. I prefer to put the priority at this moment on something else instead.
I’ll put this proposal at very low priority. Top priority would be to enhance the robustness and latency of Zilliqa so that dapps could be implemented with good UX.
If you want to chase yield, go buy and stake CARB which is within the ZIlliqa ecosystem.
Do not like this at all - bad for long term HODL’s IMO. 10% not near enough of a penalty for immediate unstaking. Additionally, this would require work by the team - let them focus on growing the DEFI and ecosystem first.
