Launchpad Update: Cooldown Period
Once again, the Avalaunch community has spoken. For some time now, devoted stakers of XAVA have strongly suggested an unstaking period and penalty following sales.
While we initially felt that it was unnecessary to design for such short term goals, the demand for such a feature has been impossible to ignore, and we realized it was an opportunity to reward those that have committed to the platform.
Beginning with the Talecraft IDO, which ends on November 23rd at 6:00 a.m. (UTC), Avalaunch will impose a five-day window during which platform users will be penalized for withdrawing their stake. This penalty, paid in XAVA, will be redistributed to stakers, increasing APY and their allocation power within the system.
The cooldown period only applies to users who have registered for the IDO. If you are simply staking, without registering, there are no restrictions on your withdrawals.
For 5 days following the sale, the penalty, paid in XAVA, is as follows:
- At the moment the sale ends the penalty period begins at a 10% withdraw fee, paid in XAVA.
- From there, the unstaking penalty will reduce linearly, every second, over a 5-day period, eventually arriving at 0%.
- Any XAVA claimed from those who unstake and incur the penalty will be redistributed to stakers.
- One second following the IDO, the penalty will be 10%
- 24 hours after the sale the penalty will be 8%
- 48 hours after the sale the penalty will be 6%
- 72 hours after the sale the penalty will be 4%
- 96 hours after the sale the penalty will be 2%
- After 120 hours—unstake with no penalty
- Any and all XAVA claimed will be redistributed to stakers
Historically, in the days following a sale, there has been roughly a 3–4% drop in the total number of XAVA staked. The Cooldown period is designed to smooth this drop off, while at the same time contributing back to the staking economy.
Assessing Fees Going Forward
The 10% starting point and 5-day window are variables we determined to be a suitable starting point. These numbers are not set in stone, can be updated in the future (in either direction), and we will be closely monitoring their impact on the XAVA economy and community.
As always, we do our best to take in feedback from our users and develop and deploy features when appropriate. We do believe the cooldown period will go a long way in ensuring that the right users are rewarded for their loyalty to the platform and we are excited about this opportunity to distribute more XAVA, and allocation power, to the people that deserve it most.
Avalaunch is a launchpad powered by the Avalanche platform, allowing new and innovative projects to seamlessly prepare for launch with an emphasis on fair and broad distribution. With its values deeply rooted in the early Avalanche community, we are able to offer projects confident, informed users who are aligned with the long-term goals of the rapidly expanding application ecosystem.
Leveraging Avalanche’s scalable, high-throughput, and low-latency platform, Avalaunch is built by users, for teams, to help grow strong communities.