Skip to main content

Stop Autoclaim of rewards when unstaking to avoid unnecessary tax liabilities

The Problem:
Currently, when a user partially unstakes, all accumulated rewards are automatically claimed. In many countries this triggers a taxable event at the current price level, regardless of whether the user wanted to realize those gains at that time.

Why This Matters:

  1. Forced Tax Liability – Users are pushed into a taxable event they didn't opt into, often at an unfavorable price point.

  2. Artificial Sell Pressure – Many users must sell a portion of their claimed rewards just to cover the tax bill, even if they had no intention of selling. This creates unnecessary downward pressure on the token.

  3. Poor User Experience – Someone who simply wants to unstake a small portion of their position shouldn't be forced to deal with their entire reward balance.

Proposed Solution:

  • Partial Unstake: Allow users to unstake without automatically claiming rewards. The rewards remain staked/compounding until the user explicitly claims them.

Benefits:

  • Users control when they realize taxable events

  • Reduces forced selling and artificial sell-side pressure

  • More flexibility for long-term holders managing their positions

Log in to comment and vote

No comments yet

Be the first to share your thoughts.