Unstaking

stICNT holders can redeem their tokens for ICNT directly through GLIF at any time, provided that the Impossible Cloud pool has sufficient liquidity to process the withdrawal.

How it works

The Impossible Cloud pool maintains a built-in exit reserve specifically for facilitating stICNT withdrawal. 10% of the pool’s assets are held in ICNT to ensure liquidity for withdrawals.

• Whenever exit liquidity is available, stICNT holders can redeem ICNT directly from the pool.

• If the exit reserve ever drops below 10%, the system automatically redirects all rewards and new deposits into the reserve until the target balance is restored.

Redemption Fee

Each withdrawal carries a 0.5% withdrawal fee, which is fully distributed to remaining stakers in the pool. Due to the compounding of assets in the pool, this fee is generally offset by yield after a short staking period.

Long-term stakers benefit when others withdraw early, as compounded yield offsets the withdrawal fee.

Purpose of the Withdrawal Fee

1. Economic Security: Prevents opportunistic withdrawals that could rapidly drain exit reserves, ensuring sustainable liquidity for everyone in the pool.

2. Long-Term Alignment: The underlying ICNT stakes are delegated to ICN nodes for up to four years to maximize network rewards. The fee discourages short-term churn and aligns incentives with the network’s long-term growth.