Why I Am A Fan Of Steemit Inc Powering Down
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Many are calling for Steemit Inc to stop their powering down. I, personally, take the opposite view.
Why would anyone not want Steemit Inc to power down? It only enhances everyone else on the system.
I realize that some DApps that received delegation are affected. This is a drawback and a negative to that. However, these projects need to figure out a way to create value on their own. As we discussed on here, relying on delegation to generate STEEM as a business model is not very effective. It is time for some creativity, which we are already seeing.
Steem Power is what determines influence on the blockchain. Most of the benefits of are offered here are tied to the amount of Steem Power an account has.
That said, it also is a reflection of the totality of what is powered up. As a larger account powers down, this increases the influence of every other account on the blockchain.
When Steemit Inc first started the powering down, it was questioned whether they were abandoning the blockchain. What was their commitment level? I think it is safe to conclude that Steemit Inc is fully dedicated to the Steem blockchain. The powering down is not an indication about how they feel. The move is for other reasons.
By removing their enormous stake, they are removed from the inflation pool. Only STEEM that is powered up receives the inflation payout. This will only help all the other accounts who do keep their STEEM as SP.
I realize that Steemit Inc will retain most of their STEEM. They have been selling some regularly to pay the bills and this will continue. However, most of what they are powering down will remain in their control.
Some will say this is just moving it from the right hand to the left. That is not the case. On this blockchain, influence is SP, not STEEM. What they are holding in wallets elsewhere does not impact the blockchain. Sure, they can power it up at any time but that is true for anyone. We do not know who is holding STEEM in exchanges and elsewhere. There is a lot of STEEM out there that is not powered up.
As I wrote when @ned was doing some things that were of great concern to the community: optics mean a lot. We have these charts put out daily by @arcange. It is there for everyone to read.
https://busy.org/@arcange/steem-statistics-20190126-cn
A large part of the Whale category is Steemit Inc. I know they will still be in possession of their STEEM. However, in terms of influence on the blockchain, it will even things out a great deal. A lot of people in the industry talked about the amount of STEEM that a few people were holding. This gave Steem a negative view by many in the industry. This will help a bit.
As the powering down is moved around, it will just blend in with the other 80 million STEEM that is held outside of SP. Also, while we will not be aware of it, the sale of STEEM by this company is going to have to continue for the foreseeable future.
Payout from the reward pool and Witness votes are all based upon Steem Power. While Steemit Inc was not active in these areas, they could have been. This removed the potential of that. Things could reverse if they power up, but for now, the power structure for the stakeholders is changing.
And, in my opinion, this is a good thing.
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Steemit Inc powering down is the best thing that has happened since I became invested in Steem.
Over the last 3 months there has been STEEM inflation (new STEEM printed) caused by SBD conversion to the tune of over 11 Million STEEM.
The SBD supply was artificially manipulated to flood the market with SBD to put downwards pressure of the SBD price with devastating consequences.
That SBD conversion (STEEM Inflation) over the last 3 months alone is equivalent to 1/3 of the Steemit Inc power down.
Most everyone is complaining about Steemit Inc power down while they don't even realize that there is a problem with printing of SBD.
The one negative of this is the removal of delegations from a few good apps. This will put more power into the hands of bidbot operators, which is a negative. But the apps will have to create business models that bring in fiat revenue streams. That is key to the success of the whole ecosystem. The ecosystem is simply too small to form a self-sustained economy of any kind.
Both don’t have to be mutually exclusive. There’s still a lot of dApps operating with delegation and that could continue despite powerdown. It would be against their own benefit to also power down that because then the feared token crash would happen due to the crashing economy for creators.
Important to keep in mind is that TM operates from the perspective that they are obliged to their STEEM and themselves. Maybe I should even reverse the order there. So they will not just dump it and even if they would want to move out, it would take months, years even before they’ve sold everything in order not to end up with only few bucks. And empowering dApps helps the token value so benefits themselves too.
The irony is that the bidbot operators are self-sustainable businesses on the Steemit blockchain, whereas these dApps, which bring a lot of value to the community, were 100% dependent on Steem Inc's delegations.
Yes.
The blockchain is good for creating credible digital scarcity coupled with actual ownership of digital assets. That's something people seem to be willing to pay fiat for. Steem also has three second money transfers that are free of charge. That's two strong points any Steem app can capitalize on in an effort to provide value that users may be willing to part with their fiat for.
The more power transfers to different investors and users, the more control comes to those who use it more which is a great trend to see no matter the temporary impacts in price as it does not dictate value.
Posted using Partiko iOS
Nice and positive news!
Thank you so much for participating the Partiko Delegation Plan Round 1! We really appreciate your support! As part of the delegation benefits, we just gave you a 3.00% upvote! Together, let’s change the world!
Always love your positive spin, @taskmaster4450. Let STINC sell so we can buy. 😎
I can't feel good about any move Steemit makes unfortunately. The track record doesn't permit it.
I definitely seem to agree,
One thing to keep in mind is that the bigger the stake the more likely the stakeholder wants steem to succeed. They may choose wrong in that objective yet no one is perfect. 😎
A reasonable answer to all this drama.
Posted using Partiko Android
You made a good point and I couldn't agree more, if people come here to rely on delegation from Steemit Inc then they joined for the wrong reason.