Proposal: QEarn Unlock Vesting Period

GeneralComputorProposals/2025-06-27-QEarn-Vesting-Period-Proposal.md

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+# 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.
+
+