Cold Staking Withdrawal Feature

Project Title:

Cold Staking Withdrawal Feature

Abstract:

Add a feature to allow cold stakers to remove their staked amount before the end of the selected staking term. The feature would deduct a penalty for early withdrawal added back into the cold staking fund to be distributed amongst remaining cold stakers or added back to the treasury. In addition, the staker would also forfeit their reward.

Current Situation:

Callisto Coin’s cold staking feature does not have an option to remove coins until the completion of the selected cold staking term/contract.

Why Have an Early Withdrawal Feature?

The purpose of an early withdrawal feature is to allow the user to withdraw funds by accepting a penalty for an early withdrawal.

Having some ability to collect back funds will provide the staker with flexibility and liquidity if needed. The penalty is in place to maintain the integrity of the monetary policy to help ensure stakers will not bounce in and out of their cold staking contract. In other words, this would act as a buy-out clause in a standard contract.

Early staking withdrawal is defined as ending the stake before reaching the end of the cold staking contract.

Benefits:

Early staking withdrawal is meant as an added feature aimed at providing users some flexibility with the introduction of multiple staking period options.

  • The early staking withdrawal feature will encourage individuals who already stake to do it for extended periods because they know they can gain access to their assets for a fee.
  • The early staking withdrawal will encourage individuals to participate in cold staking who otherwise do not stake due to fear of their holdings being inaccessible in a locked contract.

Project Development:

  1. Allow early withdrawal of a Callisto Coin cold staked contract
  2. Build an interface that allows for early withdrawal of staked funds
  3. Build an interface that provides transparency and full details on the penalty fee to withdraw funds
  4. Build a penalty engine that collects and deposit penalty fees and returns the remaining balance to the original cold staker

Option A: Back into the Cold Staking Fund for future distribution to stakers

-or-

Option B: Is deposited back into the Treasury

Risks:

  • There could be a run to withdrawal funds in a crisis, but the likelihood is low due to the penalty, and stakers are typically long-term holders for passive income.

Proposed Process Flow Early Staking Withdrawal:

  • Cold staker opens the wallet
  • Selects
  • Is presented with the fee and disclaimer information
  • User selects to the transaction

-or-

  • User selects
  • The user is prompted to verify the penalty amount and selects or
  • The user selects to
  • The cold staking funds are unlocked and transferred to the owner’s wallet
  • The penalty fee is withdrawn and sent to the cold staking contract or the Treasury

Withdrawal Formula and Example:


Note: The staker will lose the accrued cold staking reward for the chosen staking period

Project Needs:

  1. Update of the cold stake contract to allow for early withdrawal
  2. Develop a frontend interface that allows for withdrawal of funds from a cold stake contract
  3. Develop a back-end feature that collects the penalty and returns the balance to the original cold stakers wallet address, then deposits the penalty fee to the cold stake contract or the treasury.

Development:

  • Development supported by the Callisto Development Team

Testing:

  • Testing funded and conducted by Callisto Security/Callisto Development Team

Funding:

  • Callisto Enterprises.

Proposal Submitted and Developed By:

  • MyCryptoOdyssey, Mike H
2 Likes

I know we all don’t agree with everything centralized, but this would put things similar to most savings accounts people use in centralized banking. The more people that know they can withdraw in an emergency the more people will stake IMO. If savings accounts didn’t let you withdraw for certain periods, most people wouldn’t use them. Plus, extra revenue for those who hold strong or the treasury!

4 Likes