I’m cashing out some staking rewards. To do so, i have to spawn a new neuron from the maturity that my other neuron accrued. In spawning the new neuron, I would expect that the new neuron would have an ICP balance that is equal to the maturity that i used to spawn it. Instead the new neuron’s ICP balance is said to depend on the ICP price trend. What does that even mean? And why does the ICP balance of the newly spawned neuron depend on the price trend in the first place? If ICP were to 10x in between the time i choose to spawn the new neuron and the time it becomes available to disperse, does that mean the ICP balance of the newly spawned neuron would be 10x smaller than the accrued maturity that was used to spawn that new neuron?
Maturity modulation was one of the more debated proposals of 2022.
It was first described by Dom here:
And then discussed here:
If you just want to know how it works without all of that background, see the wiki:
And the IC dashboard for the current and historical maturity modulation: