The main raison we have unstaking time of 4 weeks is what make "staking" powerful. It assure that anyone that commit to staking know upfront that it's a long term investment of their asset and it prevent anyone from panic selling while also generate scarcity.
This same scarcity is what make SPS rare on the market and have a chance to push the price of it up when there is a demand. Adding such a "early withdrawal" system kill the entire purpose of what makes SPS scarce and it only a false good idea for people that want to dump on the market quickly and do trading which would have disastrous repercussion on our global economy and on the future of the flywheel itself.
For these reason I'm voting 100% no to this calamity and hope people greed won't blind them from the reality of what they are trying to change here.
I should also add that being able to unstake for 5% = bots that grind daily SPS will instantly dump them on the market daily to assure their daily earning while 100% tanking the price of SPS.
Add the fact that land is hopefully soon to be live and when that happen, you don't want people that make thousands of SPS from land daily to be able to dump them on the market as well etc.
I understand that at first glance this seems like a good idea for everyone to be able to dump on the market at their own convenience but everyone that agree right now don't seems to see the effect such a change would have on the price of SPS.
Another factor is that this 4 weeks unstaking create an extra layer of strategy for players to try and read the market and decide if they want to keep their SPS staked for extra reward and dividend or if they should unstake ahead in case there is a huge bull run in order to have those assets ready to be sold for profit etc.
In the scenario of a 1$ SPS overnight, such a dumb system would make everyone not care about that 5% and everyone and their mother would go and dump on the market, making such a run an instant pump and dump of the entire SPS while if we still have this 4 weeks in place, this prevent such a massive down pressure as the price goes up and force people to take informed decision about if it's better to stay staked or if it's time to slowly unstake in order to take profit.
Again, would you prefer bots to sell 100% over 4 weeks or 95% now, with 5% going to burn? If bots will sell regardless, so why not give them the freedom to sell when they want for a small penalty?
If SPS pumps to $1 overnight, and everyone unstakes to sell, we would have burned a LOT of SPS, reducing the overall maximum supply, creating the potential for us to pump even higher next time.
I'm worried all of your arguments are very short term oriented, if you try to see the bigger picture there are only two things a long term holder usually cares about:
Essentially, their percentage holding of SPS tokens.
The bottom line is this proposal increases the amount of SPS that can be burned, without introducing a new source of inflation of any asset, thus creating a net benefit for the ecosystem.
I would have them sell over 4 weeks for suuure... @cryptoeater I think your not valuing the danger of getting "95% NOW". That creates violent drops in the price which could destroy the price action and overall health and confidence in the token/project. Imagine if the price of SPS went to $1... you would see massive spike dumps happening immediately.
A 5% slap on the wrist to see a huge dump on the charts by whales during a bull market is not worth it... now a 25% punch to the crouch... I can live with that. 😉
That is a price worth paying for potentially harming the health of the token and price action. Remember these massive dumps destroy the charts, kill confidence in the stability of the token, and in turn, bring up questions of scams, rug pulls etc. There are also optics to this as well. Both from traders, and newbies looking at the project from the outside. The charts do not only reflect the token price but the perceived stability of the project in general. VERY IMPORTANT
If you are going to allow people to opt-out... (which I'm not against) the FEE/PAIN needs to equal that of the potential negative sentiment that will be created from a whale dumping on the market.
Or at least 10% should be a good penalty. Although higher would be better since the reason for the SPS is really the staking part and not to sell it.
The longer you make people stake SPS, the better for the game, is what I understood ever since I played the game. If the purpose of SPS is to hoard and sell then dismiss my comments on all threads.
Also, I disagree on your term "scarcity" for the SPS because if SPS is really "scarce" then its price should've spiked up by now and yet it isn't and every week it goes down more.
Staking does not equal locking necessarily, I firmly believe that is a false equivalency. For example I was informed Cardano is apparently not locked for staking, and there are various DeFi protocols out there that offer early unstake.
I agree locking does help with short term scarcity and the price stability of a token, but it does not help with the long term scarcity of the token, nor the innate value of a token.
You seem to mention price and scarcity a lot, but it is all within the context of the short term. If someone wants to sell, they will sell. Would you rather someone sell 100% of their holdings over 4 weeks or 95% right now, burning 5% in the process? I would think any rational long term holder would prefer to see a 5% burn, since short term price is completely irrelevant to a long term holder. Short term scarcity or false scarcity does not help with long term price of a token since it can always be dumped at a future date, only burned tokens is out of circulation forever.
You also mention the "disastrous repercussion on our global economy and on the future of the flywheel itself", but the price of SPS is completely unrelated to the "flywheel", that is purely dependent on the price of DEC.
While I get you are trying to justify a 5% sink as a good thing over a long period of time but the reality is that the game itself should the be one creating those sink to help reduce daily that SPS and DEC supply. We should not have to implement such a thing to justify it being a 5% sink.
Secondly, Yes I would rather bots selling 100% over 4 weeks and keeping the price of SPS stable VS allowing them to dump on us daily with a 5% sink where they can just stake for a few days at 10%+ APY in order to counter that sink and simply bypass any fees while tanking the price of SPS.
I also don't understand where you tell me that I'm looking at this from a short term perspective when clearly, this entire proposal is a short term pump and dump tool getting in place right in time for the next bull run to make sure everyone can dump at the highest instead of keeping that 4 weeks component as a tool to avoid that downward pressure and making sure that staking stay an important commitment to the game in the long term as I do see.
My point here is that what will make SPS keep is value is that mix of if you decide to stake it in order to gain APY% and in order to have as much as you can staked SPS to gain more reward from playing the game.
It should remain a commitment so that when you decide to unstake, there is a both a lost of value coming from unstaking in terms of rewards and APY% but also a lost in time that avoid people chasing green candles and just doing daily trade.
I would agree to such madness only with at least a 20% fee on early unstaking to avoid any traders to use such a tool to do day trading.
As for the 4 weeks themself, considering how many time the SPL team did push back on delivering, if we were to have such a thing in place, we would have a 0.0001SPS right now form all the panic selling from the weak hands out there that would have took that 5% lost just to sell away from the game while them being force to sell over 4 weeks mean they can also take that time to reflect on the new reality of what is changing and potentially have them change their mind half way (yeah life is like that, some people are emotional and act on FUD or on frustration and such a tool in place make sure these people get some time to cool off and it does protect the price of the token.
I'm still voting No to this as I don't see 5% as big enough to justify such a pump and dump mechanism that can and will be used for margin trading and market manipulation which will have repercussion on the overall short, medium and long term market then the 5% burn it provide.
The SPL team should be the one creating more sink, not us via the DOA creating potential long term impact on the value of SPS when we could simply wait for the team to finally deliver everything they have left on the to do list that will organically fix this non issue you are trying to solve by creating other issues.
Don't get me wrong, I got nothing again trying to find good ideas and trying to improve the DAO and find ways to create value for SPS but IMO this one break the fundamental of a system that is in place to protect SPS value overtime.