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RE: Exchange Transfer Report: 8/20/2017 to 8/26/2017
Hey @lukestokes, Thanks for your great effort on building this community!!
I've been modeling steemit's economics on a spreadsheet and already got a lot of questions answered, but there is one that I'm still failing on finding a good article about and certainly you could solve it for me.
What happens with upvote reward's size in SD in the case of a huge power down movement draining 50%-70% of the money in the system?
Tks in advance!!
I don't really know what you mean? Can you give an example? The specific economics of vote value based on the VEST shares, reward pool size, and current price of STEEM isn't something I've explored in much detail yet.
I think I got it anyway! :)
In fact I was forgetting about the reward pool rules.
I was asking in the case of many participants selling their vests and withdrawing money from the economic system by selling their STEEMs in the market.
What would happen to the voting value of those who remained with their vests untouched?
But since the STEEM price would fall sharply and the reduced amount of vested money would reduce the generation capacity of the reward pool, it would just reduce the vote value, right?
Yes, but keep in mind, for long-term investors, VEST Rewards Are More Important Than Post Price. When the price goes back up (and I believe it would as other investors come in and buy it up cheap), the those who held and increased their percentage of total VEST holdings as others were powering down will have that much more overall value and vote influence.
I completely agree, and thanks for the link!! It has some HUGE knowledge accumulated there!!
On comments, you wrote about feeling " there is great value here, but not fully convinced the economics are sound or, if they are, enough people will realize that and invest."
And "some in the steemit.chat price channel feeling the economics were broken (and they could be right)".
Do you still have some doubts about it 10 months later?
The economics were broken (way too much inflation) but they were fixed via a hard fork. Are they "working" now? I'm not sure. I guess that all depends on timescale. Maybe we'll know in a couple years.