One thing I would like to point out is that the undelegation tax should be applied to everyone, including CEX wallets like “Binance”.
No one/wallet should be “exempt” from paying “instant undelegation” tax.
If not, this will only reduce onchain supply, which is a huge f*up.
I’m not against instant undelgating but…the fee needs to be higher.
You lock up your lunc for rewards…decent rewards.
Risk/reward
IF we spike up one day to say 0.005 and someone has 100mil coins they pull a decent amount of coins per month. 1.5mil is it?
Now things look rubbish and price starts to fall. They panic and only have to pay 10% fee…they just had 12months plus gaining rewards.
Fee needs to be a real penalty. 25%
It won’t be used much either way. But if we start falling we don’t want to contribute to the fall.
This needs to be option for those who have a bad month or car break down or whatever. Not just “use it if I need” a last resort if you will.