Undelegate/Unstake tokens earlier than 21 days for extra fees

Governance & Proposals
1

Summary
Allowing users to un-delegate/un-stake their tokens earlier than 21 days with extra fees.

Motivation
The current un-delegation/un-staking process period takes up to 21 days which is very long period of time for some users to wait. A user could change his mind to un-delegate/un-stake his tokens right after the delegation and would like to take a quick action for any reason i.e. made a mistake or needs to sell these tokens for emergency funds that can be accessed right away.

Proposal
To un-stake/un-delegate tokens earlier than 21 days a user can pay extra fees that’ll be calculated based on how many days a user wanna un-stake his tokens. For example: 21 days = 0%, 14 days = 0.01%, 7 days = 0.03%, 1 day = 0.06%.
Also cap the fee. Meaning either that percentage or a max of 10k LUNC

Part of the fees could be sent to the affected validators, another part to the developers and some can be burned.

5 Likes
2

if the fees get burned then this is a yes from me.

3

I don’t have a preference when it comes to the fees. If that gets burned then we can accelerate the burning process. If that fee sent to validators and developers then that could also be a plus. The main issue is the waiting time for 21 days, it’s very long for some people.

4

You have my vote

Whilst the Terra community turned into a joke of late with egos taking over and open battles on Twitter

I wanted to Undelegate and move to Binance and exit at the next pump.

But 21 days is way too long

16 days to go for me then I’m out

I wish it was 7 days!

but there needs to be a button to Relegate if you change your mind

For example todays Agora post by Ed to bring in transparency

It’s turned in to a Vegas show and that needs to stop

The Neblio deal if it has a exclusivity for 6 months is a poor deal to the detriment of the community

No one should have exclusivity for 6 months

That sort of deal is detrimental to the community

If this project is to succeed there needs to be a lot of transparency

They need to get rid of the selfish players

So yes 21 days needs to be shortened to 7 with an option to redelegate if you change your mind within that 7 days (cooling off period)

I wish you the best with this proposal

But assuming the Validators take your staking rewards during these 21 days so I get the feeling they will not vote for this

:roll_eyes:

3 Likes
5

I think it is a great idea but with a slicer… Instant Unstake would burn 50.4% 21 days Unstake would burn 0 like now.

So my purpose is:

21 days have 504 hours.

50.4%/504 = 0.1%

So if you choose 0 hours you would pay 50.4% in burn fees

If you choose 24 hours (1 day) 48% burn fees

if you choose 240 hours(10 days) 26,4% Burn Fees

If you chose 480 hours (20 days) 2.4% Burn Fees

If you choose 504 hours (21 days) 0 Burn Fees.

With a slider with every 6 hours option and a place to insert the number of hours you want it to take to unbond.

1 Like
6

So if you have 1,000,000 tokens and wanted to undelegate right away (0 hours) you’ll lose 50% of your tokens?

7

I like that idea, it would prevent everyone from unstaking and selling all at one time. As well as a nice sized burn if they did decided to do it anyway.

8

Keep in mind that with a perceived death spiral may in fact cause more harm to themselves.

A) it will add more downward pressure to the market.

B) it may likely harm themselves in an extreme FUDing event that rebounds the following days.

This IMO can not be relied upon to be that of a serious mechanism to burn coins.

Most people who stake know the risks involved with the 21 day lock up, so in reality this is really for stakers who are a bit wobbly in the knees, who still want an exit strategy for the next death spiral.

What I would prefer to see

Perhaps there should be some diff levels of APY rewards based on time commitments.
Perhaps also be able to split your LUNC and stake different durations.

example only
7 days - 5%
14 days - 10%
21 days - 20%
28 days - 25%

I stake 75% of my holdings and keep 25% with Binance Earn. to take advantage of the big green candles.

The Binance earn at the moment is 4.3% and can be unlocked almost instantly

9

Should I make the proposal for voting on terra station?

10

How do you propose to implement this decentralized?

11

This will be implemented in the undelegate UI section on Terra Station, something like this screenshot:

Capture
Capture626Ă—892 30.6 KB

12

@ermac2014 In my opinion this needs person that actualy don´t care about community and LUNC it self, but his/her profit.

13

So what if you change the picture inside Terra Station? Your proposal is not about UI, lol. You propose to change contract system. When you delegating, your coins transferred to the Bonded Tokens Pool. When you undelegating, your coins move from above address to the NonBonded Tokens Pool with standard locking for 21 days. You need to edit the code, which setting the undelegate period.

And before that, you will need to send an undelegate transaction, which contains a message about:

  1. the amount of the undelegating stake;
  2. the amount of the stake that will be sent to the burning address (for example);
  3. your custom undelegate period.

Then Bonded Tokens Pool will send the transaction with message about undelegate period and the amount on undelegated stake to the NonBonded Tokens Pool.

Bonded/Staked Tokens Pool address: terra1fl48vsnmsdzcv85q5d2q4z5ajdha8yu3nln0mh
NonBonded/Unstaked Tokens Pool address: terra1tygms3xhhs3yv487phx3dw4a95jn7t7l8l07dr

I hope you got it, because english is not my native lang. :pray:

1 Like
14

I don’t know the technicalities in the back-end. But you seem you got a good idea about how can it be done. Now that code/setting can be set through the UI when you decide to undelegate your tokens. As you’ve mentioned the collected fee from the undelegation process can be sent 50-25-25 to burn address, affected validator, community pool.

As an example, in the screenshot you can see the fee is set as (9.00%) = 9000 LUNC, 50% of it will be burnt and the other 50% can be shared between the validators and the community pool. I don’t have the a preference when it comes to decide how much can be burnt and how much can be contributed to the validators/pool. But I do think this proposal can help with burning large amount of tokens as well as help to fun the operation.

This would be the price for someone who wanna undelegate their tokens fast. Having an option is better than nothing.

15

UIcan only help you with transaction’s message. But contract must understand this message and send another message to the another contract and last one must understand its message too.