#dusk $DUSK Today I re-calculated the node staking ledger for @Dusk and found, besides the hardware costs and annualized returns, a particularly devastating detail— the unbonding period.#dusk
To maintain the stability of the Succinct Attestation (SA) consensus network, Dusk has set a strict lock-up period for DUSK staking on Provisioner nodes. If a node chooses to cancel staking and withdraw its tokens, it cannot exit within seconds; instead, it must go through several cycles of cooling-off waiting.$BTC
From a network security perspective, this is completely reasonable. It effectively prevents malicious nodes from withdrawing and running instantly after doing harm, and it also ensures the stability of the consensus committee. But for investors in the secondary market and market makers, it’s no different from planting a liquidity bomb.
Imagine when the overall crypto market hits a macro “black swan” event and coin prices swing violently—the DUSK locked in the node is completely unable to move. Retail and institutions can only watch helplessly as their principal drops sharply with the market, without the ability to hedge or cut losses.
This design of “sacrificing token liquidity for consensus security” is greeted with great delight during a one-way bull market. But once the market enters a bear-market downward channel, it will greatly suppress the willingness of large capital to stake for the long term. How to strike a balance between the lock-up duration and investors’ liquidity needs is an especially tough test of the team’s management wisdom.
$DUSK #dusk @Dusk
To maintain the stability of the Succinct Attestation (SA) consensus network, Dusk has set a strict lock-up period for DUSK staking on Provisioner nodes. If a node chooses to cancel staking and withdraw its tokens, it cannot exit within seconds; instead, it must go through several cycles of cooling-off waiting.$BTC
From a network security perspective, this is completely reasonable. It effectively prevents malicious nodes from withdrawing and running instantly after doing harm, and it also ensures the stability of the consensus committee. But for investors in the secondary market and market makers, it’s no different from planting a liquidity bomb.
Imagine when the overall crypto market hits a macro “black swan” event and coin prices swing violently—the DUSK locked in the node is completely unable to move. Retail and institutions can only watch helplessly as their principal drops sharply with the market, without the ability to hedge or cut losses.
This design of “sacrificing token liquidity for consensus security” is greeted with great delight during a one-way bull market. But once the market enters a bear-market downward channel, it will greatly suppress the willingness of large capital to stake for the long term. How to strike a balance between the lock-up duration and investors’ liquidity needs is an especially tough test of the team’s management wisdom.
$DUSK #dusk @Dusk