This proposal aims to stabilize the price of the currency by implementing a variable staking withdrawal mechanism. Currently, staking and rewards are the main uses of Lunc. However, due to the volatility of the coin price, many people are hesitant to lock their coins for a fixed period of 21 days.
To illustrate the problem, let us consider the following example: a user performs staking of a certain amount of coins because he trusts the project. However, if he disagrees with a proposal presented in the governance system that he considers detrimental to his investment, he will want to “undelegate”. However, in this scenario, he would have to wait 21 days to have his coins available, which prevents him from moving them to a centralized exchange (CEX) and selling them. Although this seems beneficial for price stability, the investor will actually prefer to keep his coins in a CEX to be able to sell them in case of unexpected events, since the 21-day deadline is too long.
Therefore, the proposal consists of adopting a flexible “vesting” system. Instead of just waiting 21 days, we could offer other options, such as 21 days, 7 days, and even an instant option. For example, if a user wants to “undelegate” but doesn’t mind waiting 21 days, he won’t be penalized, maintaining the current functioning. On the other hand, if the user identifies an unfavorable proposal and wants to “undelegate” before its approval, he will have a 7-day unstake option , but this will incur a cost. For example, he will have to pay 7% of the total rewards received in the last 21 days, corresponding to the amount he intends to unlock.
In addition, we will offer the option of “unstake now” for those who want to quickly unlock their funds. However, this option will have an additional cost. For example, if the user opts for instant unstake, he will have to pay 50% of the rewards received in the last 21 days for the amount to be unlocked.
Example of a user who staked 2 million coins and wants to unstake 1 million. If he chooses to wait 21 days, then he only needs to wait 21 days.
Option 1: Waiting time for unstake in 21 days.
Let T be the waiting time in days.
T = 21
If he activates the unstake option in 7 days, then after 7 days he will have his coins, but with a deduction of 7% of the rewards that staking earned in the last 21 days.
Option 2: Deduction of 7% of rewards for unstaking in 7 days.
Let R be the total value of rewards received in 21 days.
R = 20,000 coins
Deduction = 7% * R
Let D be the deducted value.
D = 0.07 * R
In the case of the example, D = 0.07 * 20,000 = 1400 coins.
In the case he chooses to do instant unstake, the amount to be paid would increase to 50%, which means, in this example10000 coins would be withdrawn.
Option 3: Value to be paid for instant unstake.
Payment = 50% * R
Let P be the value to be paid.
P = 0.50 * R
In the case of the example, P = 0.50 * 20,000 = 10000 coins.
These equations represent the corresponding values to the mentioned examples, providing a numerical basis for the different unstake options.
These additional payments can be directed to feed the “Oracle pool,” “community pool,” and “burn.” In addiction , they can be allocated to a new pool to support the collateral related to USTC re-peg, distributed as follows: 25% to “OP,” 25% to “CP,” 25% to “Burn,” and the remaining 25% to the collateral.
The goal of this proposal is to attract more users to stake on the chain by providing flexible unlocking options that reduce the fear of the lock-up period. Additionally, it aims to stabilize the price by removing many coins from circulation, as supporting burn, funding of Community pool , oracle pool, and even a possible re peg.
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