Unbonding

Unbonding is the process of initiating the withdrawal of staked tokens from a validator, which typically triggers a waiting period before the assets become liquid. This delay is a security feature intended to prevent validators from exiting immediately after committing a malicious act or when the network is under stress.

During the unbonding phase, the tokens do not earn staking rewards and cannot be used for voting or other governance activities. Understanding the unbonding timeline is essential for investors, as it limits their ability to react quickly to market volatility or shifts in protocol-level risks.

It is a core aspect of the liquidity profile of any staked digital asset.