How Does the Duration of a Lock-up Period in Staking Affect Its Perceived Value?

A longer lock-up period generally decreases the liquidity and increases the illiquidity risk of the staked asset, thus potentially lowering its perceived value or demanding a higher yield (staking reward) to compensate for the reduced flexibility. Shorter lock-ups or liquid staking solutions increase capital mobility and are often perceived as more valuable by investors, even if they offer slightly lower base rewards.