What i know about the process to unstake your staked Ethereum:
- It will happen 6mths to 1 year after the merge. You won't be able to begin unstaking immediately after merge ends.
- Only a certain number of validators can unstake every epoch.
What i'd like to know, is how many ETH is each validator, exactly? 32ETH? Also, how long is one epoch, and how many validators would be allowed to exit each epoch?
Essentially, the exit queue sounds like an ETH dump schedule to me. Every epoch, the maximum possible amount of ETH will be unstaked and dumped. This will happen every epoch until stETH, bETH, and other liquid staked ETH are back to peg. I'd like to know exactly how large an impact each epoch dump will have.
I was in a shitcoin that tried using an exit queue mechanic. It didn't work. People took one look at the long exit queue, and decided that it's better to wait for the next dump next epoch before buying. Which caused price to dump further. Which caused even more people to flee for the exits. Which caused potential buyers to take one look at the longer exit queue, and decided that it's better to wait for the next dump next epoch before buying. They eventually did away with the queue to let the price dump as needed so buyers can finally stop waiting for the next dump next epoch. That shitcoin was TempleDAO. ETH 2.0 should take notes, and learn from their mistakes. That might have been a shitcoin, but similar human psychology should come into play for ETH 2.0.
*EDIT to add in my experience of what it was like being in an exit queue*:
Imagine that we enter a selloff, so you look at the queue now, and it's one hour. You go for dinner, look again, and it's six hours. You go to sleep, wake up next morning, and the queue is now one week. All this while, coin price is crashing. If you keep waiting, next thing you know, your coins could be locked for a month, so your best play is to just join the queue now just in case you do have to sell later. So you join the queue and wait a week, and now you are finally unstaked. Price has fallen to a level where you think it's crazy to sell. However, you see that buy pressure has been low as people see the now one month long queue to exit. And you also know that there is a month's worth of people behind you waiting to unstake, and they'd probably sell once they finally get out. So you sell, and wait for better wntry price to rebuy cheaper. The psychology is similar for buyers. They see the queue becoming longer and longer, and smell the desperation to sell (in the shitcoin's case, they even saw the desperation to sell; the discord was in turmoil from angry people having their networth wiped while stuck in queue), so they keep waiting for a better entry price. As a result, during periods of selloffs, it can make things much worse for coin price once a queue appears.
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