It's hard to predict (I've heard a bit more about the scheme since my initial comment (which will hopefully be announced soon)).

I think the outcome will depend upon a lot of things... since the people having the ideas and doing the development will be paid in STEEM, they might decide to sell once they've been paid and that'll be that (the price will drop in the short term).

It's also possible that they'll believe in their idea with the opinion that the improvement to Steemit's platform will attract new users and therefore increase the price - and perhaps decide to hold their STEEM until the price rises as a result.

Like you suggest, even if the developers do sell their STEEM, then Steemit will have progressed and be a more attractive proposition to both users and investors (in the long term), putting us on an upward trajectory. This could even prompt some of those who moved over to Hive to return (and bring their assets with them).

I'm on the optimistic side of the fence at the moment 📈

As you say, time will tell ⏳