Early Delegator Withdraw w/ Tax


I understand that there is a small window in which to have your tokens unstaked from the delegating process on the xDai chain, and that this was by design. However, some users may (for a variety of reasons) want access to their delegated tokens immediately. Therefore I propose the following:

  1. 72h withdraw option with a penalty
  2. 24h withdraw option with a larger penalty
  3. 12h withdraw option with the largest penalty

Tokens lost due to this early exit tax would either be:
A) burned
B) redistributed to delegators
C) some combination of A & B

This would give some additional value to network delegators, while also giving users the ability to withdraw early if they have urgent need.

It’s possible to create a liquid staking where such mechanic can be implemented on the metaprotocol level. There are examples of liquid staking for DOT or ETH. We don’t plan to introduce such complexity in POSDAO since the codebase is frozen for the audit and not going to change for a while after that.