Repeg assist idea: Undelegation lock period selection system

Governance & Proposals
1

Proposed by Tamashi ( @tamashi_papa )

Summary
If you undelegate LUNC you are currently staking, It will be locked for 21 days. This option provides you an extra choice other than 21 days. The options are “21 days, 14 days, 7 days”. The initial state is still locked for 21 days. steker pay USTC to choose 14 days or 7 days. All paid USTC will be burned.

By creating The options the hurdles to stake can be lowered and the staking rate can be expected to improve. This proposal will increase demand for both LUNC and USTC. USTC is burned so it helps repeg.

Shortening the lock period (Shorten)
We can choose the lock period, but that can only before pressing the undelegate button.
A normal undelegation has a lock period for 21 days, but you can select (shorten) the lock period by using the “Shorten button”.

We can shorten the lock by any amount of LUNC and select the amount of LUNC to shorten.
After 7 days are selected and once payment is completed, it is not possible to select 14 days.

This is the UI image and operatabilities look like below.

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USTC amount required for payment
Select 14 days: USTC amount required for payment is “equivalent to 3% of total LUNC entered for period change”

Select 7 days: USTC amount required for payment is “equivalent to 6% of total LUNC entered for period change”

The calculation standard is “(21×2)/14=3” and “(21×2)/7=6”

If you want to reduce the lock period of $100 worth of LUNC to 14 days, you pay $3 worth of USTC.

If you want to reduce the lock period of $100 worth of LUNC to 7 days, you pay $6 worth of USTC

Some people may be concerned that these 3% and 6% payments are too high, but think about it. If you don’t want to pay, you don’t have to pay. If you do not pay, it will be locked for 21 days after undelegation, and nothing will change from the current situation.

The current staking rate is about 20% APR for LUNC and USTC combined. A 3% payment is equivalent to 1.8 months, and a 6% payment is equivalent to 3.6 months, even if we shorten the lock period for all staked LUNCs. Paying with staking rewards is also quite possible. It is similar to the staking method where the interest rate of the reward changes depending on the period. However, the longer the staking period, the “relatively” cheaper the payment.

This proposal would help adding USTC burning mechanism to the infrastructure of the chain.

4 Likes
2

what they should do is reduce the time to 14 days without any penalty or other nonsense.

1 Like
3

You will be charged if you were optin.

4

I encountered a serious security breach when my account got hacked. Thankfully, the existence of a 21-day waiting period granted me enough time to diligently research and educate myself on the necessary steps to recover my precious LUNC coins. Without the invaluable buffer of this waiting period, my coins would have inevitably fallen into the hands of the hacker. As a result, I vehemently object to this proposal and firmly opt to endure the 21-day waiting period, rather than succumb to an alternative that may involve paying a fee.

1 Like
5

Flexible unstaking period options is already being discussed in Agora proposal 51964.
Is there anything unique about this particular Agora proposal 52043 that warrants a separate discussion?

7

Vegas proposal 51964 pays part of the received reward as a cost and send to the “community pool”, “Oracle pool”, and “burn”.

My proposal 52043 determines the USTC amount to pay by the amount staked. And it send all USTC paid to ‘burn’. If we can’t pay with the reward we received, we can buy USTC and pay for it. so the demand for USTC will increase.

The two are the same “unstake” proposal, but with these differences