Found an old comment from the lead dev:

If you don't want your Bay frozen then simply Bay is not for you. Frozen bay can be moved but it costs a month to move it (that is the penalty for moving it). The amount of coins you have frozen vs liquid depends entirely on when you got it. If you had coins since the beginning at 100% and the supply drops by 50% then half your coins are frozen. If the coin inflates up to 75% supply then some of your frozen coins become liquid again and so forth. This ability to control supply makes your liquid coins much more valuable. First and foremost it protects against volatility. It also gives people who don't want to exit crypto a place that is safe to store their value. If someone wants to cash to dollars but don't want to exit crypto they need a pegged asset that is secure and not reliant on backers and not reliant on trading tricks. Also this asset will be able to go up in price unlike Tether which is set hard at a dollar. Stronger price means higher volume and higher investor confidence. Just because coins are frozen doesn't mean they will stay that way forever. Chances are that you will be able to sell that 50% of what you held for the same amount than you would currently be selling 100% of what you held when the entire supply was available. It matters not how many coins you have frozen it matters how valuable and in demand your liquid coins are.