When a validator participating in a staking system decides to initiate the unstaking process, they are given the flexibility to select the specific amount of their staked tokens that they wish to unstake. Once the validator has made their decision, the chosen amount becomes “unbonded” and is no longer actively participating in the staking mechanism.
However, this newly unbonded amount does not immediately become available for immediate use or transfer. Instead, there is a predefined period during which the validator must wait before they can access and utilize these tokens again. This waiting period is referred to as the “unbonding period.” During this time, the unbonded tokens are considered “unavailable” for staking or any other transactions within the network.
An important aspect to note is that during the entire unbonding period, the amount that has been unstaked does not contribute to the validator’s staking rewards. This means that the validator temporarily forgoes any potential rewards or benefits that they would otherwise receive had the tokens remained staked.
At present, the unbonding period is set to three months, meaning that validators have to wait for this duration before they can access their unbonded tokens and participate in staking once again. However, this proposal will look to modify this aspect of the staking system. The proposal aims to reduce the unbonding period significantly, from the existing three months down to a much shorter duration of three weeks.
The intent behind this proposed change is likely to provide greater liquidity and flexibility to validators by allowing them quicker access to their unbonded tokens. By reducing the unbonding period, validators would have more agility in managing their staked assets, which could potentially lead to increased participation and efficiency within the staking ecosystem.
Before this change can be implemented, it will undergo a thorough review and discussion within the staking community and network’s governance process to ensure that all stakeholders have a chance to voice their opinions, concerns, and ideas. This way, the decision will be made collectively, considering the interests of everyone involved in the staking system.
Neutaro has an on-chain governance mechanism for signaling, changing consensus parameters, and spending funds from the community pool.