1.5 Unstaking and Cascading Effects

Unstaking your $vCASH from a Founder Node can have a direct impact on the node’s performance and the rewards for all participants. Here’s how it works:

• Decreased Reward Rate: When you unstake, the total amount of $vCASH staked in the Founder Node decreases. Since rewards are distributed proportionally based on the total staked amount, this reduction lowers the overall rewards for everyone involved in that particular node.

• Cascading Effect: If multiple users choose to unstake at the same time, the cumulative reduction in staked $vCASH can significantly diminish the reward rate for the entire node. This collective impact can discourage participation and affect the stability of the rewards for all stakers.

To maintain the health of the network and ensure consistent rewards, unstaking is discouraged unless absolutely necessary. This mechanism incentivizes long-term staking and promotes stability within the Cashtap ecosystem.