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Traditional Two-Step Unstaking

The traditional unstaking process mirrors how Monad's native staking works: a two-step process with a mandatory waiting period. This method charges no fees, but it does require the user to wait until shMonad's Unstaking Period has passed and then submit a second transaction to complete the withdrawal.

How It Works​

Step 1: Request Unstake

When you request an unstake:

  1. Your shMON tokens are burned immediately
  2. The system records how much MON you're owed
  3. The exchange rate at this moment determines your MON amount -this rate is locked in
  4. Your unstake request enters a queue

Step 2: Complete Unstake (After Waiting)

Once the waiting period ends:

  1. You call the completion function
  2. The protocol transfers your MON
  3. Your unstake is finalized

Limitations​

Only One Active Unstaking Request at a Time​

A user may only have one traditional unstaking request active at a time. Submitting a second traditional unstaking request before completing the withdrawal from the first request will merge the two unstaking requests together into a single request. The entirety of the combined amount being unstaked will be available at the completion time of the last unstaking request. Put differently, submitting a second traditional unstaking request "resets" the waiting duration of the first request. Note that Atomic Unstaking requests are exempt-they do not reset the waiting duration of any pending traditional unstaking requests.

Two-Step Unstaking's Wait Duration​

The minimum waiting time is approximately 4-5 epochs, which translates to 22-27 hours depending on timing.

This delay exists due to the following factors:

The Worst-Case Scenario​

Your unstake request might arrive at the worst possible moment in the epoch cycle:

Epoch N (Request arrives):

  • You request your unstake late in the epoch
  • Too late for validators to process it this epoch

Epoch N+1 (Boundary delays):

  • The system processes epoch-end accounting
  • Last validator updates complete
  • System recognizes your unstake request

Epoch N+2 (Effective processing):

  • Because the previous epoch had boundary timing issues, this becomes the effective processing epoch
  • Your unstake finally enters the validator queue

Epoch N+3 (Waiting period):

  • Monad requires a one-epoch delay for unstaking
  • Your MON is now in the unstaking queue

Epoch N+4 (Collection):

  • The unstake completes
  • MON returns from validators to the protocol

Epoch N+5 (Available):

  • You can now safely complete your withdrawal
  • The protocol has your MON available to transfer

Why Each Step Is Necessary​

  1. Epoch boundaries: Validators only process changes at epoch boundaries, not continuously
  2. Queue processing: Multiple users' requests must be batched and processed together
  3. Network delay: Monad enforces a mandatory waiting period before stake can be withdrawn
  4. Safety margins: The system adds buffer time to ensure MON is actually available when you complete

Exchange Rate Lock-In​

Critical timing detail: The exchange rate is locked when you request the unstake, not when you complete it.

This means:

  • If equity grows while you're waiting, you don't benefit
  • If equity shrinks while you're waiting, you don't lose
  • Your MON amount is fixed at the moment you burn your shMON

For most users, this is fair -you've already exited your position when you request the unstake. The waiting period is purely a technical requirement of the underlying staking system.

The Same-Epoch "Cost" of Unstaking​

If you deposit and then immediately request an unstake in the same epoch, you may receive less MON than you deposited. This happens because:

  1. Deposits include current epoch rewards in the rate (you pay a higher price per shMON)
  2. Unstakes exclude current epoch rewards from the rate (you receive a lower value per shMON)

This mechanism intentionally discourages "flash staking" where users try to capture a few blocks of rewards and immediately exit and is discussed in greater detail in the Exchange Rate section.

When to Use Traditional Unstaking​

Choose this method when:

  • You're not in a hurry and can wait a little longer than 1 days
  • You want to avoid paying any fees
  • You're withdrawing a large amount where fees would be significant
  • The atomic pool doesn't have enough liquidity for your withdrawal

The trade-off is simple: time vs. fees. Traditional unstaking takes longer but costs nothing.