Instant unstaking for the governance token (Gzil) holders

Proposals Protocol
1

Summary:

This governance proposal aims to introduce a change to the Zilliqa blockchain that allows users holding 10 Gzil tokens in their wallets to instantly unstake their Zil tokens, bypassing the two-week unstaking period. By implementing this feature, Zilliqa aims to enhance user flexibility and incentivize greater participation in the network’s staking ecosystem.

Abstract:

The proposed change to the Zilliqa blockchain introduces an instant unstaking mechanism for users who hold a minimum of 10 Gzil tokens. Currently, Zilliqa users who stake their Zil tokens need to wait for a two-week unstaking period before they can access their staked tokens. This proposal seeks to reduce the unstaking period for Gzil token holders, allowing them to withdraw their staked Zil tokens instantly, providing them with more control and liquidity over their assets. This change aims to promote further engagement and participation within the Zilliqa ecosystem.

Motivation:

The motivation behind this governance proposal lies in addressing the liquidity and flexibility concerns of Zilliqa token holders who participate in the staking process. The current two-week unstaking period may deter users from staking their Zil tokens, as it restricts their ability to access and utilize their assets in a timely manner. By introducing instant unstaking for users who hold 10 Gzil tokens, Zilliqa aims to provide a solution that incentivizes staking participation while simultaneously increasing the utility and value of the Gzil governance token.

This change benefits the Zilliqa ecosystem in several ways:

  • Enhanced User Flexibility: Instant unstaking empowers users to have greater control over their staked assets, allowing them to respond quickly to market conditions or personal circumstances without the need for a lengthy unstaking period. This flexibility encourages more users to stake their Zil tokens, contributing to a more robust and secure network.
  • Increased Staking Participation: By reducing the barriers to entry and providing a more user-friendly staking experience, the proposal encourages more users to actively participate in staking activities. This, in turn, strengthens the network’s security and decentralization, as more tokens are actively staked and secured within the Zilliqa blockchain.
  • Value Proposition for Gzil Token: Introducing instant unstaking for Gzil token holders adds a valuable utility to the governance token. This change incentivizes token holders to acquire and maintain Gzil tokens, as they can enjoy the benefit of instant unstaking and actively participate in governance decisions. Consequently, this increases demand and adoption of Gzil tokens, fostering a more engaged and empowered community.

Specification:

To implement the proposed change, the Zilliqa blockchain will undergo an upgrade that introduces an additional layer of smart contract functionality. This smart contract will verify and authenticate the possession of 10 Gzil tokens within the user’s wallet. When a user initiates an unstaking request with the required amount of Gzil tokens, the smart contract will execute an instant unstaking transaction, bypassing the regular two-week unstaking period.

The specification of the governance proposal includes the following key components:

  • Smart Contract Upgrade: The Zilliqa development team will design and deploy a smart contract upgrade to accommodate the instant unstaking feature. The upgrade will include the necessary logic to validate the possession of 10 Gzil tokens and execute instant unstaking transactions accordingly.
  • Wallet Integration: Wallet providers and third-party platforms supporting Zilliqa will need to update their interfaces to accommodate the instant unstaking functionality. This ensures a seamless user experience and allows token holders to initiate instant unstaking requests directly from their wallets.
  • Communication and Education: The Zilliqa team will actively communicate and educate the community about the introduction of instant unstaking and its benefits. This includes sharing detailed instructions on how to participate, the significance of holding Gzil tokens, and the impact on the overall network ecosystem.
  • Voting Mechanism: To adopt this governance proposal, a voting process will be conducted within the Zilliqa community. Gzil token holders will be eligible to cast their votes, either in favor or against the proposal. The voting mechanism will be transparent and follow the established governance protocols.

By implementing this governance proposal, Zilliqa takes a significant step towards enhancing user experience, promoting greater participation, and increasing the value proposition of the Gzil governance token within the Zilliqa ecosystem.*

  • For
  • Against
0 voters
1 Like
2

Hello! We already have an instant unstaking feature with Torch wallet to avoid the unbonding period. What you’re suggesting seems to be require a protocol update and a lot of changes to support this (from all SSNs and (wallet) infrastructure. Seems a bit that the main function would be to quickly buy gZIL, unstake your ZIL, then sell gZIL after that? How would this be sustainable

1 Like
3

Hi Milan,
Good points. While I like the torch wallet, not everyone are using it hence i still believe this proposal is beneficial for average Zil holder.
Certain mechanism should be implemented for the points you mentioned. Ideas I have in mind (either one or combination of these can be implemented):

  1. minimum holding period (2 weeks) for the Gzil for the unstaking feature to become unlocked (easy to implement)
  2. if the delegation proposal goes through- the unstaking mechanism becomes unlocked after 10 Gzils are delegated for atleast 2 weeks (could be implemented together with delegation proposal)
  3. instant unstaking only unlocked of Gzils are actively used in voting (bit more complex to implement and would need more discussion)

Personally I believe #2 would be most suitable solution and would also work as a motivator to delegate your voting power making the voting more efficient and sustainable.

2 Likes
4

Good points. While I like the torch wallet, not everyone are using it hence i still believe this proposal is beneficial for average Zil holder.

This is true but we will soon launch an instant unstaking website for all SSNs

The options seem to be hard to implement. How would anybody know I have it more than 2 weeks if I buy it from a DEX? Also, did you get in touch with the core team to discuss this? Doesn’t seem to be like a small little add on and will require a protocol update.

1 Like
5

The proposal of immediately removing staking funds for those with 10 gZil is absurd and unacceptable. If anything, I am in favor of an option that allows for the immediate removal of Zil without consequences up to the amount of gZil currently held, with an additional 50% of those gZil being locked for 14 days. Otherwise, it doesn’t make sense. The absurd assumption that 10 gZil (approximately $50) would allow for the immediate unlocking of 1 million Zil is not what this is about, and I will never vote for such ideas.

1 Like