Bonded Tokens

When staking, CTC must be bonded in a Stash account. This is a process by which tokens are "frozen" in exchange for some other benefit. In the Creditcoin network, users can bond their tokens in exchange for the right to participate in consensus and receive rewards.

To transfer bonded CTC, tokens must go through an unbonding period, during which they cannot be used to nominate validators and do not contribute to earning any rewards. Creditcoin’s unbonding period is 7 days. This is a security measure designed to align security and economic incentives for both validators and nominators, ensuring that those who participate in consensus have “skin in the game” as they cannot exit their positions right away.