I am going to be brief, and if there is enough interest I will create a formal proposal!
Would it be possible to set a “freeze” timer on accumulated rewards so that only a certain percentage can be withdrawn at a time? For example, if I deposit liquidity and I earn 5 PNG and want to withdraw, I have to wait 7 days and I can only withdraw 20% at a time.
What about for staking funds? Could there be a freeze period wherein people who unstake have to wait 28 amount of days to unstake? The Graph does this with a 28 day unthaw period where withdrawed stake and rewards are frozen. The Graph’s staking mechanism is strong.
By freezing and limiting withdrawal of rewards, Pangolin can safely continue to provide incentive to liquidity providers (big and small) while avoiding the unnecessary risk of allowing negative price pressure on PNG.
tl;dr - would it be worth it to instate a withdrawal freeze on supplied liquidity and earned rewards to prevent overwhelming sell pressure on PNG?
I think artificial barriers to withdraw or trade are bad. It will make people think twice about providing liquidity. And in the end it will not change the basic token price discovery but only delay it somewhat. It’s better to be simple and transparent and get to price discovery fast.
Freezing and limiting !? If we want a higher PNG price, we should focus on ways to make PNG more desirable, not less.
The Graph has arguably the most intricate and quickly adopted staking protocol and they have a 28 day withdrawal freeze. You want to prevent a whale from pulling his rewards and dumping them on you constantly? Make him think twice about pulling rewards or liquidity by imposing a freezing period. People will feel safer staking and holding PNG because they will know it will be less susceptible to unnecessary sell pressure related to liquidation of mining pools and rewards.
This dump we are experiencing is a result of no cap airdrop. Once the airdrop PNG issue is over and then the rewards for pools are adjusted there will be no need for such restriction.
Partial freezing came to my mind as well. I had the idea of releasing in 3 weeks.
Immediate release 40%, second release after a week 30%, third release after two weeks 20% and the last one after three weeks 10%.
The more I think about restrictions and their effects, the less desirable I find it.