Claim Rewards from Locked Staking

This proposal aims to accomplish 2 things:

1. make rewards from fixed-term staking claimable
2. counteract increased circulation with an early-claim fee which will be burned

Currently, a user is incentivized to increase their locked staking time in exchange for a higher APY. However, a user cannot claim their rewards until the end of the period thus putting the user in an awkward position. The APY will be higher, but if the market is trending down, both rewards and the initial staking deposit will depreciate. The user is unlikely to increase their fixed-staking time since they are watching their net worth fall.

The side-effect of this would be increased circulation of Cake which is against the spirit of fixed-term staking and does not benefit long-term Cake holders. However, this can be leveraged to benefit all Cake holders by implementing an early-claim fee which will then be burned.

Example: User A has $1,000 USD worth of claimable Cake rewards. They can claim it at the end of the period penalty free, or claim their rewards with an early-claim fee. Let’s use 10% for the sake of this example. If the user claims the Cake before their staking period ends, they receive $900 USD worth of Cake and $100 is burned.

This mechanism has 2 primary benefits:

1. initially, circulating supply may increase but long-term, more Cake will be burned reducing the overall supply
2. users will be more likely to increase fixed-staking time reducing circulating supply (this could also counteract any initial circulating supply increase from point 1 but this is not guaranteed)

There is also the potential benefit of increased trading volume on the platform since it’s reasonable to assume that users want to liquidate Cake since they are incurring a penalty to withdraw Cake early. However, this is speculation and not within the scope of this proposal.

The variable is the early-claim fee. What should this percentage be?