WISE is a proof-of-stake cryptocurrency that specializes in creating interest for users through staking. WISE aims to revolutionize the Decentralized Finance (DeFi) industry by creating a new kind of digital financial ecosystem, where everyone can benefit from opportunities in a transparent and just manner.
WISE Staking – what is it?
WISE is a PoS cryptocurrency that relies on staking to maintain the security of the network and to mine new tokens.
WISE staking involves reserving your tokens in the WISE contract in order to generate interest over the duration. You can stake any amount you wish and withdraw your interest at any time during the period.
Also, you can close/end your stake in WISE before maturity in case of the need for money. In this article, we discuss the detailed procedure of closing a WISE stake.
Closing a WISE stake – What it takes
Ideally, a WISE stake will automatically end once it reaches maturity. However, the owner can choose to close his/her stake even before maturity. Depending on the stake’s status at the time of closing, the following three cases may arise:
1. Closing a Pending Stake
A new stake may take around a day to become active. A pending stake is when your stake is not yet active. If you request to close a pending stake, the stake shares will be destroyed and you’ll receive the entire stake principal (original investment) back to your account, with zero interest or penalty.
2. Closing an Active stake before maturity
If you wish to close a WISE stake that hasn’t yet matured, you will have to pay a penalty on the principal amount. In the case, the stake shares are destroyed and the principal is sent back to the user after deducting a penalty. You’ll also receive any interest accumulated by the stake so far.
The penalty deducted from the principal when closing an Active stake is as follows:
If the stake is one day long:
Penalty Amount = stakedWise × 0.1
If the stake is two or more days long:
Penalty Amount = stakedWise × (.1 + .8 × ((daysLeft – 1) / (stakedDays – 1)))
3. Closing a Mature stake
Once a WISE stake matures, the owner can close and redeem it at any time, without incurring a penalty or fee of any kind. In the case, the stake shares are destroyed and the principal amount along with interest is sent back to the user.
The process to close a WISE stake is quite simple and straightforward. To close your stake in WISE, you can use the option available on your dashboard. Depending on the stake status, you’ll get the principal (minus penalty if any) and interest back to your account upon closing.