Stake Liquidity refers to the ease with which digital assets that have been locked or “staked” in a Proof-of-Stake blockchain can be converted back into a freely tradable or spendable form. High stake liquidity means assets can be unstaked quickly and without significant loss of value. It indicates the flexibility of staked capital.
Context
The level of stake liquidity is a key consideration for participants in Proof-of-Stake networks, influencing their willingness to commit capital for validation. While high liquidity is attractive to stakers, long unbonding periods can enhance network security by deterring rapid withdrawals. Protocol designers continuously evaluate mechanisms to improve liquidity while preserving network integrity.
Introducing the MINSLACK mechanism, this work formally resolves the PoS utility-security trade-off by dynamically constraining validator exits to maintain crypto-economic safety.
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