How much STEEM would hit the market if the Top 100 STEEM power holders would all power down at the same time and sell?
This question popped in my head while cooking today and I decided to do a fast calculation for fun.
As of 7 November 2016 the top 100 Steem power holders have a total of 158,141,742 Steem power.
± 158 million STEEM Power held by the top 100.
Top 25 Steempower holders. (source: steemWhales.com)
Current STEEM price = 0.00023500 BTC (bitcoins)
Under the old rules it will take 24 months to power down.
6,589,239 STEEM sold per month.
219,641 STEEM sold per day.
To keep the price of STEEM the same we need an inflow of new capital of:
$35,700 per day.
Under the new rules it will take 3 months to power down.
52,713,914 STEEM sold per month
1,757,130 STEEM sold per day
To keep the price of STEEM the same we need an inflow of new capital of:
$289,100
Number of things to take into account:
- The chance of the whole top 100 powering down is not so big. So this is worst case.
- Under the old rules, the inflation rate was so high that the flow of Steem hitting the market every day would be going up every day forever.
- Under the new rules the inflation is way lower (only 9,5%). So once all the STEEM is sold there is no more STEEM hitting the market. The Flow will stop after 3 months.
Will you be buying?
Follow Me @exyle
There will be no selling. My amateur opinion. But we'll see. Btw: I saw word cooking on the start of post and beard kind of surprise me on the end, haha.
I hope there will be some selling by investors so more users can buy in. Haha, yes I like to cook. Before and after I grew the beard!
WILL YOU be buying and what price are you looking for . Up-voted and followed
I'm already buying. If it goes lower I will buy more.
Great post and good info! Thanks for showing us the numbers! :)
Thank you! I had fun doing it.
I've asked this elsewhere with no response...If the annual interest rate on SP will be 1.425% (15% of 9.5% annual rate) while disolution rate (increase in amount of steem) will be 9.5%, you would lose share(vest) by holding Steem Power. And thus, voting will fall. What am I missing here?
But most troubling is the realization that such fundamental economics can change in a matter days. But then, it is their experiment.
From how I understand it. Steem power is not STEEM. Steem power represents how much Steem it would cost to buy the Vests that you own. I don't think it matters if that numbers increases or decreases. The amount of Vests you have will stay the same as long as you don't Power down.