diff --git a/GeneralComputorProposals/2025-06-27-QEarn-Vesting-Period-Proposal.md b/GeneralComputorProposals/2025-06-27-QEarn-Vesting-Period-Proposal.md new file mode 100644 index 0000000..391280e --- /dev/null +++ b/GeneralComputorProposals/2025-06-27-QEarn-Vesting-Period-Proposal.md @@ -0,0 +1,73 @@ +# Proposal: QEarn Unlock Vesting Period + +## Purpose + +This proposal seeks to adjust the QEarn locking system by introducing a tiered vesting period **after users initiate an unlock request**. +The goal is to prevent short-term manipulation of yield dynamics and ensure a more balanced reward system that favors long-term participation. + +--- + +## Decision to Quorum +Should the QEarn smart contract be updated to include the proposed vesting period logic after unlock requests, as described in this proposal? + +### Available Options: + +> Option 0: NO – Retain current status + +> Option 1: YES – Implement vesting delay based on lock duration + +## Context + +QEarn was introduced to reduce the circulating supply of $QUBIC by incentivizing long-term locking through a weekly staking pool model. While the model is functioning as intended on a technical level, recent behavior has revealed imbalances: + +- Some users are locking large amounts of $QUBIC, then just exit shortly after locking round start, undermining the reward system. +- The ability to unlock immediately has allowed speculative participants to treat QEarn as a short-term farm, rather than a commitment mechanism. + +Community feedback has pointed out that this creates an unfair ecosystem and destabilizes weekly yield expectations. This proposal introduces a **post-unlock vesting period** as a mitigation strategy. + +--- + +## Proposal Details + +Upon user-triggered unlock, funds will not be immediately released. Instead, a **vesting delay** will be applied based on how long the user has already been locked in the current staking round: + +| Lock Duration at Unlock Request | Vesting Delay | +|-------------------------------|---------------| +| Less than 1 month | 4 weeks | +| 1–2 months | 3 weeks | +| 3–9 months | 2 weeks | +| 9–12 months | No delay – unlock immediately | + +Additional points: + +- **Final reward share is calculated based on when vesting ends**, not when the unlock request is made. +- **Keeping funds locked beyond vesting has no additional reward impact.** +- **This change will affect all locked funds in QEarn! - New and running locking rounds will be affected by that change** + +--- + +## Rationale + +This adjustment discourages speculative short-term locks without fully removing the flexibility to unlock. It: + +- Makes reward outcomes more stable and predictable. +- Encourages users to think long-term rather than game weekly lock cycles. +- Disincentivizes farming behavior that undermines reward fairness. +- Protects the integrity of QEarn as a deflationary and commitment-based mechanism. + +--- + +## Implementation Plan + +If accepted by the Quorum, the implementation will proceed in two phases: + +### Phase 1 – Development +- Development of the necessary QEarn smart contract changes will begin. +- This includes unlock request tracking, vesting timers, and reward calculation logic. +- Frontend elements will be updated to reflect the new behavior (vesting countdowns, unlock availability, reward eligibility messaging). + +### Phase 2 – Activation via Smart Contract Proposal +- Once development and internal testing are complete, a **follow-up on-chain proposal** will be submitted to formally activate the new vesting logic in the QEarn smart contract. +- This ensures that no code change occurs without explicit Quorum approval on-chain. + +