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+# Automatic undelegation from inactive nodes
+
+## Summary
+
+[summary]: #summary
+
+CEP PR: [casperlabs/ceps#0094](https://github.com/casperlabs/ceps/pull/94)
+
+We propose introducing a functionality of automatically undelegating all delegators from validators 
+who have been inactive for a set number of eras.
+
+Additionally, we propose giving validators an option to impose a more restrictive era limit on themselves,
+as a guarantee for their delegators.
+
+## Motivation
+
+[motivation]: #motivation
+
+Automatic undelegation is meant to encourage good stewardship of node operators. It would also make it easier 
+and quicker for delegators to unlock their funds if staked with an inactive validator.
+
+## Guide-level explanation
+
+[guide-level-explanation]: #guide-level-explanation
+
+Our proposal is to extend the `ValidatorBid` struct to track the era when a given validator has become inactive.
+We would then run a cleanup process at the end ef each era before the auction is run to find all validators
+who have been inactive longer than the configured delay and undelegate all their delegators.
+
+The undelegation would follow the existing approach - an `UnbondingPurse` would be created for each delegator's stake
+and it would then be returned to the delegator's main purse after the unbonding delay.
+
+## Reference-level explanation
+
+[reference-level-explanation]: #reference-level-explanation
+
+### Chainspec update
+
+Chainspec needs to be updated to include the default global setting for `inactive_validator_undelegation_delay`.
+Similar to `auction_delay` this setting would express a delay in eras after a validator becomes inactive before 
+all delegators are undelegated.
+
+### Extending `ValidatorBid` struct to include `eviction_era` and `inactive_validator_undelegation_delay`
+
+To enable tracking how many eras have passed since a validator has been marked as inactive, the `ValidatorBid` struct 
+needs to be extended to include an `eviction_era` field which would contain an optional `EraId` to track when a given
+validator was evicted.
+
+We would also add an `inactive_validator_undelegation_delay` field to enable configuration of validator-specific 
+undelegation delay.
+
+The changed struct would look as follows:
+
+```rust
+pub struct ValidatorBid {
+    /// Validator public key
+    validator_public_key: PublicKey,
+    /// The purse that was used for bonding.
+    bonding_purse: URef,
+    /// The amount of tokens staked by a validator (not including delegators).
+    staked_amount: U512,
+    /// Delegation rate
+    delegation_rate: DelegationRate,
+    /// Vesting schedule for a genesis validator. `None` if non-genesis validator.
+    vesting_schedule: Option<VestingSchedule>,
+    /// `true` if validator has been "evicted"
+    inactive: bool,
+    /// Era when validator has been "evicted"
+    eviction_era: Option<EraId>,
+    /// Delay after validator has been "evicted"
+    /// before all delegators are undelegated
+    inactive_validator_undelegation_delay: u64,
+}
+```
+
+### Adding optional argument to `add_bid` auction entrypoint
+
+To give operators an option to configure a more restrictive delay setting on themselves we would add an optional
+`u64` argument `inactive_validator_undelegation_delay` to the `add_bid` entrypoint of the Auction contract. If a value
+is not provided the chainspec default would be used for a given validator bid. 
+
+The value would also be validated to be smaller or equal to the global setting and throw a corresponding error if appropriate.
+
+## Drawbacks
+
+[drawbacks]: #drawbacks
+
+Introducing this functionality would mean modifying delegators' bids without their explicit consent. 
+Until now this could only happen if a validator completely unstaked and delegations had to be returned.
+
+This could potentially introduce some confusion, since there's currently no way for a delegator to clearly identify
+why a given transfer to their purse has happened. In the future this could be solved by leveraging the event system 
+to emit events which could be correlated with a given transfer for example in a block explorer.
+
+## Rationale and alternatives
+
+[rationale-and-alternatives]: #rationale-and-alternatives
+
+Since the overall functionality is mostly straightforward, there were no alternative approaches considered.
+
+## Prior art
+
+[prior-art]: #prior-art
+
+We are not yet aware of other solutions.
+
+## Unresolved questions
+
+[unresolved-questions]: #unresolved-questions
+
+There are no outstanding questions at the moment.
+
+## Future possibilities
+
+[future-possibilities]: #future-possibilities
+
+As mentioned above in the future we could add traceability to the system by using an event system.
+If also implemented on the block explorer side this would create a better user experience for delegators.
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