Summary : Goldfinch should allow users to cancel their FIDU withdrawal request with 0% fees for a short 28 day window to give users the opportunity to reconsider their withdrawal.
Motivation: GIP-25 was approved and implemented in order to proportionally distribute USDC to FIDU owners requesting a withdrawal from the Senior Pool. It was implemented with a 1% fee to cancel any outstanding withdrawal request in order to avoid users gaming the queue or staking rewards. However, given the significant withdraw pressure (~45% of all FIDU) and the increased rewards of staking/LPs, community members have expressed interest in removing a portion or all of their withdrawal request if they could do so penalty free. Offering a temporary, short-term window to cancel outstanding withdrawal requests for 0% fees is the simplest implementation that can already be done without any code changes.
Specification & Requirements:
A fixed period of time will be determined and announced in advance for the withdraw cancellation fee to be temporarily reduced from 1% → 0%.
This proposal requires the creation of the following protocol parameters:
The length of time the withdraw fees will be temporarily lowered to 0%. We are initially proposing a period of 28 days, which represents 2 full distribution cycles, with an optional 5 day extension for the Warbler Labs team to operationally handle the changes if needed.
Benefits:
This proposal would operate as a short-term measure to alleviate some of the FIDU withdraw queue pressure and allow users who feel trapped in the withdrawal queue due to the 1% cancellation fee an opportunity to reconsider what they want to do with their FIDU token holdings.
Drawbacks and Risks:
Users may choose to game the withdrawal queue during the short-term window when cancellation fees are set to 0%, allowing them to freely move FIDU into and out of the withdrawal
Voting :
Yes: Temporarily lower the withdraw cancellation request fee to 0% for a 28 day period of time, giving users advance notice of the timeframe
No: Keep the withdraw cancellation request fee at 1%
Keep the withdraw cancellation request fee at 1%. 1% percent, this is not a big commission, everyone knew the conditions, I see no reason to constantly change the rules
I appreciate your response and perspective. While I agree everyone knew the conditions of the withdrawal fee, users did not have an understanding of how slow withdrawals would be given the significant withdraw pressure.
Note further that this would only be a 1-time, temporary (28 day) removal of the fee, and after that it would be brought back up to 1%. The goal is to relieve some of the withdraw queue pressure.
Not sure if this extra context changes your mind at all, but wanted to re-iterate some of the important points for why I brought this proposal up.
A good opportunity for those who may have changed their mind and no longer want to withdraw from the Senior Pool. I don’t see any potentially serious risks here, so I’ll be voting “Yes”
@nanojohn thanks for wrapping it up! I will vote “Yes”, as I believe it to be a good way to decrease the pressure on withdrawals. I also like, that this solution will be a temporary one.
I think that the one-time 28-day period for reviewing the decision to withdraw funds from the pool is not a significant deviation from the originally adopted rules.
In this case, the proposed measure reflects the current situation and will be useful for those who wish to cancel their withdrawal request.
Since this is the first proposal of its kind, I will vote “YES”.
