Extending Unstake Period to Mitigate Sell Pressure
IoTeX, a blockchain platform that places a strong emphasis on the Internet of Things (IoT), has been continuously evolving to improve its ecosystem and provide a seamless experience for its users. One significant aspect of the IoTeX network is its staking mechanism, which allows users to participate in consensus and earn rewards for securing the network. In an effort to further enhance the efficiency and stability of the network, proposing an Improvement Implementation Plan (IIP) to extend the unstake period to 14 or even 15 days is a prudent step forward.
The current unstaking period on IoTeX is a mere 3 days. While this offers users flexibility and liquidity, it can inadvertently contribute to sell pressure during price increases. The shorter unstaking period means that individuals looking to cash out their rewards or holdings can quickly unstake their tokens and liquidate them on the market. This rapid process, especially during bullish market trends, can lead to a surge in sell orders and potentially exert downward pressure on IoTeX’s token price.
Extending the unstaking period to 14 or 15 days would present several advantages. Firstly, it would discourage impulsive selling by imposing a longer wait time for unstaked tokens to become fully transferable. This delay can prompt stakeholders to carefully consider their decision to unstake, leading to a more thoughtful and informed approach.
Secondly, a lengthened unstaking period would align more closely with the longer-term vision and stability goals of IoTeX. By encouraging users to commit to a longer holding period, the IoTeX network can promote a sense of dedication and commitment among its community, fostering a stronger and more resilient ecosystem.
Moreover, this change would potentially decrease sell pressure during price surges, providing a more stable trading environment. With a longer unstaking period, the number of available tokens for sale at any given moment would decrease, creating a more balanced supply-demand dynamic and reducing the impact of sudden sell-offs.
In conclusion, proposing an IIP to extend the unstake period to 14 or 15 days is a strategic move to enhance IoTeX’s staking mechanism. By encouraging a longer holding commitment and mitigating sell pressure during price spikes, this modification can contribute to the stability and overall success of the IoTeX network, aligning with the platform’s objectives of fostering a strong and secure IoT-focused blockchain ecosystem.
With some about this news maybe coinbase will burn those erc-20 tokens and replace them with the native ver.