Cooldown Periods
delayed exit windows
Cooldown Periods are predefined waiting times that users must observe after initiating a withdrawal from a staking or locking mechanism before they can access their assets. These periods serve as a friction layer to discourage impulsive exits, protect protocol stability, and enable fair reward distribution cycles. During the cooldown phase, assets are non-earning and non-liquid, but still under user custody or contract control.
Use Case: A staking protocol requires users to wait 5 days after clicking “unstake” before they can claim their tokens. During this cooldown period, rewards stop accruing, and the withdrawal is time-gated to prevent rapid in/out behavior and reward gaming.
Key Concepts:
- Delayed Unstaking — Withdrawal requests are queued for a fixed period.
- No-Yield Window — Assets in cooldown no longer earn rewards.
- Protocol Stability — Reduces volatility and mass exit risk during market dips.
- Security Buffer — Adds time to detect and react to abnormal or malicious activity.
Summary: Cooldown Periods enforce patience and planning in Web3 participation. They support emission control, discourage short-term farming, and promote healthier tokenomics by spacing out user exits and aligning incentives with longer-term commitment.