The permanent staking mechanism of $WCT introduces a User-Triggered Unlocking Period, allowing users to actively initiate the unlocking process when needed, rather than having the unlocking time enforced by the protocol. This design provides users with greater flexibility and control, aligning with the Web3 emphasis on user sovereignty.
How the Unlocking Period Works
Trigger Mechanism: Users submit an unlocking request through a smart contract, initiating the unlocking countdown. The unlocking period is usually of a fixed duration (such as 7 days, 14 days, or 30 days) to ensure network stability and prevent malicious behavior.
Purpose and Significance: The user-triggered unlocking period balances the stability of long-term staking with the demand for short-term liquidity. Users can choose to unlock based on market changes, personal funding needs, or other strategic considerations without being constrained by fixed staking periods.
Potential Challenges: The existence of an unlocking period may lead to short-term market volatility, especially during large-scale unlocks. To mitigate this issue, the protocol may set unlocking limits or phased release mechanisms.
This flexible unlocking mechanism encourages users to maintain a long-term perspective while staking, while also retaining the possibility to adjust strategies at any time, thereby enhancing user experience and engagement. #WalletConnect @WalletConnect