RE: Final Review of Steem Economic Changes
The main reasons to power up are the there that you described - slightly better against inflation, curation rewards, and voting influence.
The power down rate used to be 2 years, and they changed it to 13 weeks. Since the change to 13 weeks, we have gone through several 13 week cycles, so all of the major stakeholders have had the opportunity to dump 100% of their stake if they wanted.
The price was in the 8-10 cent range several months ago - everybody thought those were dark days, and many were worried that it was going to crash to zero. With the price above $1 now, it has presented a great opportunity for anyone wishing to leave to get out.
Here is a good site to tell you what the major stakeholders are doing. It will tell you which of them are currently powering down, and if so - how much. Keep in mind though, powering down doesn't necessarily mean they are going to sell. https://steemwhales.com/
That is great Tim, I will have a look.
I still think that a variable rate would make a lot of sense. First we had 2 years now it is 3 months.
It sounds a bit wishy washy to me. In the end we want to protect the system as much as possible to make sure that the whales don't cashout at once.
I agree that they had an opportunity to do this already, however the fact that this didn't happen doesn't mean it won't happen when steem is 2$ or higher.
What I am worried about is that inevitably in the possible short future there will be way to many power downs. It is inevitable, hoping this won't happen doesn't sound like a good idea.
in other words if the current economy only can deal with a max level of power down before it descents to levels where the curation system doesn't work. Why wouldn't we want to stop this from happening?
This could happen whilst it doesn't have to happen. The question also is are people happy waiting an extra month or longer if it stops steem from dropping in value due to too many power downs.
So my suggestion is If max level is reached people have to wait a little longer to power down or we can make the 3 months 4 months or longer whilst too many power down are happening in terms of what the steemit market can handle.
This way we have control over the power downs, otherwise we are just hoping for the best and I really don't think this is a good idea.
It also shows to new investors that whales and everyone involved want to make Steemit succesful.
Maybe I am missing some vital info here this right here is my main worry and I think will be on every new investors mind.
There were a lot of arguments for and against the change to 13 weeks. Personally I like it better. People are allowed to do what they want with their stake. If they want to cash out, it can actually harm the community to hold someone here for two years. Some of the people can even turn toxic. As with any crypto currency, if a large stakeholder is looking to cash out, hopefully there are enough new investors wanting to buy the supply.
Hi Tim,
Thx for the response, I don't see the benefits yet, hopefully someone can enlighten me on this.
If I had a choice between a possible collapse of the entire system versus 1 guy that signed up for powering 2 years and get's nasty about it.... the answer is pretty evident.
The problem is new investors might not be there at that moment in time... if more steem get's powered down then the economy can handle it will collapse, no?
So this is not good for anyone even the people powering down don't want this to happen.
Well, I'm not going to try and convince you.
Ok, that is fair enough 😄
I hope someone will, as I like to power up more, but this 13 weeks stops me from that right now.
In most cryptos there is no power up / power down, right? Stakeholders can cash out 100% of their stake at any time? Why is there an expectation for users funds to be locked up for two years in order to be comfortable with an investment?
Well I think that steemit is not like most crypto's. Most crypto's have a steady inflation.
We could argue that Steem has steady inflation.
But correct me if I am wrong, by allowing power down you create effectively a system that allows for huge swings in available liquid steem.
Ie. some 13 weeks will have little effect on the price, but this system allows too many liquid steem to flow in as people powering down don't know what the max level of power down is before the price goes down.
The fact that this hasn't happened yet does not mean it won't happen. There could be many reasons why people are now happy holding longer.
And generally if it can happen it will happen, it would only make sense that we will tread those waters over time.
So why not make it a variable rate (13 weeks when economy is healthy)
Increase the wait when economy is not doing so well.
Or base it on a max amount of power down the system can handle without plunging the price to depths that have no limit.
Or allow people to choose what level of vesting they would like to take, short term , mid term, long term.
There are so many less risky options. I want steemit to succeed, so I am just worried about this.
13 weeks seems to me very tricky, as even in a healthy economy if too many power down the price will plunge.
Because it is variable it is a different economy altogether then any other currency.
But Tim, I will try not go in circles as you already mentioned your opinion, I probably already did 😜. I will do some more research.
It would be nice to see some calculations based on what would happen if right now 10/20/30/40% powers down.
Still I would love to hear if there are very strong counter arguments for having these 13 weeks.
I am not here to show I am right, I am just trying to find out why 13 weeks has come in and if what I am thinking/ worries me is totally unfounded.
Thx!