Deprecate pSTAKE on Cosmos and return funds back to all users

Overview

Since the move to the Bitcoin Ecosystem in early 2024, pSTAKE on Cosmos has been deprioritized as a product stream. All stkTokens on Cosmos have been in maintenance mode since with no new development, integrations, or incentivization.

Intending to unwind and deprecate pSTAKE on Cosmos, this proposal suggests introducing a feature allowing current stkToken holders (except for stkXPRT) to redeem and claim their underlying assets. All stkXPRT functionalities will continue to work normally for now.

It provides the user with a simple and secure experience to get their funds back without adding any risk to the protocol.

The proposed approach involves:

1. Upgrading the Persistence Core-1 chain (base of pSTAKE on Cosmos) to pause all liquid staking functionality and unstake all funds on behalf of users.

2. Launching a Redeem functionality where users can burn stkTokens and claim their funds back.

Having pSTAKE on Cosmos run in maintenance mode involves additional debugging efforts, running critical infrastructure, and regular product maintenance. This proposed deprecation commits to pSTAKE’s move to focus and prioritize its Bitcoin Staking solution on Babylon.

Vote

Vote 'FOR' if you agree with the proposed deprecation of pSTAKE on Cosmos.

Vote 'AGAINST' if you disagree with the proposed deprecation of pSTAKE on Cosmos.

Vote 'ABSTAIN' if you choose not to participate in this proposal.