Octopus Network Must-Read Series
Octopus Network unbonding period is 21 days for Delegators and Validators
Validators and Delegators have to bear the opportunity cost for the duration of the unbonding period, so naturally, they would want the unbonding period to be as short as possible.
The unbonding period of Octopus Network is 21 days for two main reasons：
- From the perspective of Security: When a Validator’s malicious behavior is discovered, we need enough time to penalize the Validator. From this point of view, 21 days is already the minimum period and shorter than the industry standard.
- From the perspective of Community Governance: Because the 21-day unbonding period earns no rewards, it’s in the best interest of Validators and Delegators to perform their due diligence on an appchain to make an informed and comprehensive staking selection, thereby reducing volatility in staking.
The biggest difference between Octopus Network and other types of staking mechanisms is the Leased Proof of Security (LPoS) mechanism. Validators and Delegators stake $OCT and are rewarded with the Appchain’s native token.
If the unbonding period for Delegators were much shorter than the Validators, it would defeat the purpose. First, it would encourage Delegators to be short-term profit-seekers. Second, it could cause a “self-delegation” issue where a Validator might stake the minimum $OCT required to run a node, and then delegate the rest of the $OCT to his or her own node, which would also incentivize Validators to become short-term profit-seekers.
For the Octopus Network to be successful, the community needs to continuously support high-quality Appchains to join Octopus Network, and Validators and Delegators need to stake on Appchains with high potential and long-term value.
Originally published at https://medium.com on August 30, 2022.
Why is the Unbonding Period 21 Days? was originally published in Octopus Network on Medium, where people are continuing the conversation by highlighting and responding to this story.