Looks like fun! Thanks for the updates today, the natives were getting restless :)
Would adjusting the inflation rate by itself be enough to halt the current downward spiral we presently find ourselves in regarding the price of steem?
Looks like fun! Thanks for the updates today, the natives were getting restless :)
Would adjusting the inflation rate by itself be enough to halt the current downward spiral we presently find ourselves in regarding the price of steem?
There are two types of speculators - long run and short run. Currently Steem only supports long run speculators while most cryptos are driven by short-to-medium run speculators and market makers. Lowering the inflation allows these critical ecosystem participants to get involved in a meaningful way.
On another hand, shortening the SP hold period would hasten the rate at which the price finds legs. This could be parameterized to if the witnesses/community accepts it. I will relay my thoughts this coming week.
Shortening the SP hold period is a dangerous proposition. There has been an inordinate amount of attention given to the debt load that SDB represents, in my opinion... And little regard for the debt load the SP represents.
Concerns about the debt load represented by SBD are driven by the impact of additional liquid Steem that would be sold on the market if all SBD were converted in short order. The overwhelming demand would drive the price down dangerously fast. Yet in practice, more liquid Steem is produced and sold on the market as a result of SP balances powering down than SBD conversion...
Shortening the SP hold period will drastically increase the amount of Steem put on the market, an drive the price down to dangerous lows. I think we can find better ways to achieve stability.
The focus should be on increasing incentives to hold SP. Once we take this route of lowering the amount of time to power down, there will be no going back! A better solution is to look at the 10s of thousands of current account and how to incentivise THEM to hold or buy SP.
I disagree... I think SP levels are too high. The focus should be on achieving stability.
Can you explain why you think that? What is the issue with SP levels being high?
These are good points but I think that it is possible to explain it in more accessible way to ordinary user so it doesn't resemble market prediction astrology :-)
That sounds to me like panic talking... Like when somebody sells all their bitcoin when the price drops...
We don't want short term speculators! We want long term investors. And that could come from the 10s of thousands of users you have already on the website if you were to introduce more incentives to buy steem.
With the new features coming I think you and Dan should seriously talk about the use of PERKS to incentivise without forcing users to buy.
https://steemit.com/steemit/@beanz/increasing-demand-for-steem-power-with-status
Short term speculators = quick buck = baling out with SP power down
Long term speculators = believing in the future of invention = holding up SP regardless of SP and SBD price decrease