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RE: The Economics Behind the Steem Dollar Arbitrage..
@hisnameisollie - Good analysis as always.
What are your thoughts on providing real, significant incentives for remaining powered up? Right now there is no reason to NOT power down from what I can see, and since all the whales are doing it, rational actors are following suit and selling as soon as they can.
Now, I understand the reasoning for this is to accelerate the distribution, but it also damages confidence to see consistent declines in price. Speculators help the ecosystem almost as much as the content creators, since it attracts more of the latter when the valuation of the tokens are higher.
What say you?
Hello @blakemiles84 I can see your point of view.
I think this is the cost of natural distribution. Certainly a rising/stable Steem Price breeds confidence in the ecosystem, but we are so early here, this would take governmental levels of control to achieve.
As me and you have discussed before, the closer to we get to 90% Steem Power to Total Steem Supply, the less this incentive exists.
I think we've just got to hold out until we reach this scenario.