Penalty for early withdrawal

I don’t know if it’s too early to talk about this, but one thing I always wondered was the size of the penalty for early withdrawal when flashstaking. I know the idea was to burn some XIO to be able to withdraw early. But how high will the penalty be and what token will it be denominated in?
Will it be calculated based on the $ value when I start the stake or will it be calculate in XIO?
What if I am staking Link and not XIO? Will it be calculate in LINK?
The reason why I am asking is because i feel like depending on what we choose, it could be “gamed”. Which is why we should talk about possible ways to game it and how to prevent them.
For example if the penalty decreases in time (which it should), we would want to ensure that it is equally beneficial to stake for a year and then withdraw after a month and stake for a month from the beginning. Or should it be less beneficial because we want to punish people for leaving early?

1 Like

I think that the “penalty”, or toll, and its % and amount is all but yet decided… Once the dapp will be up and running it will probably be decided by the community. I don’t like a small toll, since people should leave their xio staked, in my opinion

This is something which I believe we should be testing our using game theory in one of the later flashstaking competitions.

I see Zach made a video about this topic: $FLASH early unstaking formula + penalty - YouTube

Also I noticed someone else made the same suggestion on the forum but updated it to flash (not XIO). Any chance the topics could be merged?