Allow for early Bank withdrawal, but you will lose a % of your Bank tokens based upon the lock up period. Any tokens that you lose will be burned.
So, for example, I have 1000 Bank locked up for 1 year. Now I decide I want to withdraw them 6 months in. I’ll be allowed to do this but when I withdraw I’ll lose 50% of my Bank tokens. That 50% that I lose will be burned.
This adds a burning mechanism and also allows for some flexibility.
I like the idea. I wonder if it’s even possible given the smart contracts. Be nice to have a burn mechanism somewhere to offset the monthly drops.
Instead of burn, why not instead pooled to the protocol to be redistributed to everyone else except the parties pulling out? Or, does burning the tokens do that in effect because relative voting power is the same either way? I would say that since BANK is already a tradable asset, just burning it doesn’t seem to make much sense to me.
Its not technically trivial, but not impossible. My main concerns are
A) this would add the potential for users to make a massive mistake and completely destroy their BANK holdings. Obviously users are responsible for the transactions they send, but people make mistakes and click the wrong button and this one would be really really bad.
B) this would potentially open an attack vector by reducing the cost to place a large vote on a proposal, or allowing a user to vote multiple times on the same proposal with the same tokens (i.e. vote, pull and burn, max lock what you get back with another account and vote again)
I think a Convex (Alvex?) type project would be a better solution 
Fair points. Especially the possible voting manipulation.
Maybe to release the ‘‘early release’’ tokens periodically instead of immediately. So, e.g. depending on the original lock time release them over a period of weeks/months which would still mean you regain access over your tokens way earlier than originally. In the extreme cases (lock for 4+ years), but instead have 50% of the tokens released over 6 months might still be a very nice option to have
this is more in line with what could make sense, you take a cut to reduce your lock time down to the minimum (2 weeks). The cut would have to be substantial, curious how many people would be willing to/want to do this.
This would be a cool and useful feature in my opinion! I can easily imagine that someone would be fine taking a significant cut if there’s a lot of $bank price appreciation - losing not so much value in usd. And additionally in crypto 1/2/4 years is pretty long, a user could have a change of heart and want to change his/hers defi strategy.
I wonder if there is a secondary market making solution, where those who’ve locked BANK can redeem early, for a fee, if there is someone willing to stake/lock BANK to replace the redeemed portions.
The party willing to replace that staked/locked BANK would be taking a portion of that fee that the redeemer pays, to be split between the provider and Algofi the platform.
Alternatively, perhaps a liquidity pool between BANK and veBANK could provide a similar service?
I think a better idea would be to allow for multiple staking options with the same wallet. For example…be able to lock 5000 bank for 4 years, 5000 bank for 2 years and 10000 for 6 months or something like that with whatever amounts/time frames the user chooses. This way if someone locks up their coins for a long period, they would have some short term options to be more liquid with the rest.
I agree, I like the way Opulous has done their staking (raffle emissions). You can stake for multiple durations.