Unstaking Queue

Mechanics and Functionality

The unstaking queue in the Bits Protocol is a transparent mechanism designed to manage withdrawals efficiently while maintaining the integrity of the staking pool. Upon deposit, the protocol ladders the lock-up periods for each contribution, distributing unlocks across days. This staggered approach ensures a consistent flow of available liquidity, preventing sudden outflows that could disrupt the system.

When multiple users initiate unstaking simultaneously, requests are processed in a first-in, first-out (FIFO) queue. Depending on demand and the volume of unlocking assets, processing may take from a few hours to several days. Users can visualize the queue in real-time through the protocol's interface, providing clear expectations on timelines.

This system emphasizes accountability by handling all operations with real assets on-chain, eliminating opacity and ensuring that unstaking is backed by actual BTC liquidity. By monitoring the queue, users gain insights into network activity and can plan their withdrawals accordingly, fostering trust and predictability in the protocol.