RE: Unstake SPS Early with Penalty
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I like the idea, but I think 4% might be a bit too low.
You said your idea was 1% per week so for 4 weeks 4%.
My idea as a suggestion would be to raise 1% for every week.
so first week is 1%, 2nd week is 2% . . . and so on.
So then for a 4 week reduction, it would cost 1%+2%+3%+4% = 10%
This could also allow to maybe add an option where you can do less than 100% time reduction unstaking, meaning for example you burn 3% and get 50% instantly, but still need to wait 2 weeks for the extra 50% or you burn 1% and get 25% instantly, but need to wait 3 weeks for the extra 75%.
Just my idea on how to improve this proposal potentially.
For now I will still vote Yes for this proposal as I like the freedom it would bring to people regarding their SPS holdings and also a nice SPS Burning mechanism.
Issue with this is someone can withdraw 25% instantly for 1% fee, then another 25% for 1% fee, then another 1% for 25% and so on.
However, I do tend to agree we can increase the fee slightly from 4% to 5% and see how that goes since everyone seems to want that
As purposed the *1% per week still equals to an overall cost of 1% on total tokens cashed out. Some are calculating 1 x 4 because of the four week unstake but imo that isn't the correct calculation. Wouldn't there be a one and done cashout (unless used multiple times) making the 1%/1.25 % fee a straight fee and not a compound fee.
Ex. If I cash out 100 SPS / 25 a week using the current system and get charged 1% for doing so that is 1% on 25 and the same 1% fee on the next three 25 weekly cashouts. That still equals to 1 SPS or 1% of the total casheout amount. . A minimum of a straight 5% fee would be much more reasonable.