Unstake

Unstake is the process of withdrawing staked tokens from a proof-of-stake network, ending participation in the network’s consensus for those funds. Stakers can be individuals who hold and delegate tokens or operators who run validators. When tokens are staked, they are typically locked to support network operations and earn rewards; unstaking stops those rewards and initiates a cooldown or unbonding period before the funds become liquid again.

The unbonding period varies by network and is a common mechanism to protect the network from sudden mass withdrawals. During this period, the tokens are not transferable and, in many systems, do not accrue rewards. After the unbonding window expires, the tokens return to liquidity and can be transferred, traded, or re-staked.

Partial unstaking is often possible, allowing a holder to reduce but not completely remove their stake. However, some networks require a minimum stake or impose penalties for early withdrawal. In addition to liquidity considerations, unstakers face the risk of slashing if the validator or pool to which their stake is delegated is penalized for misbehavior or downtime.

Procedure in practice typically involves a user initiating an unstake or undelegate action in a wallet or staking platform, selecting the amount to unstake, and confirming the request. The funds remain staked during the unbonding period, after which they become available for use. Understanding the specific rules of a given network—such as unbonding duration, rewards treatment during cooldown, and any fees—is essential before unstaking.