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RE: How to increase demand for steem and steem power?

in #steem8 years ago

I like some of those ideas, and I couldn't agree more with if you want to increase the demand for steem, you need to make it more useful. What are your thoughts on this idea that I suggested on @ned's post?

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Well, how would work on you? Lets take a whale like smooth. He powers down and its worth what like $15K a week in steem.

How large a voting bonus would they need to give you in order to forgoe a 15K cash payment? I bet pretty large.

Here's how I look at it:

  • If retail shop raises the price on a box of cereal from $4 to $8, far fewer people are going to purchase it at $8.
  • If the shop instead lowers the price from $4 to $2, many more people will buy it than before.

Lowering the price from $4 to $2 makes buying it significantly more attractive, but at what point does everyone decide that it's suddenly worth buying? There is no one price; everyone places a unique subjective value on the cereal. One person might not buy it until it gets down to $3.95, another won't pull the trigger until it gets down to $3.10, and another won't buy until it goes all the way down to $2.00.
Each time you make buying the cereal a little more attractive, another small subset of people will choose to buy it.

In the case of Steem Power, we have no idea when it will become attractive for each individual user. However, we do know that with each little benefit added, it will become valuable enough for some more Steemians to buy/​hold/power up.

Smooth has so much SP that he should be powering down to make the distribution better. Yeah, it hurts price in the short term, but if whales don't do that, new and potential users will complain forever how unfair the distribution of steem is.

Well, that would be a positive incentive. But I'm not sure how powerful it would be. I don't think people are usually powering down just for fun. How much of the powering down decisions could be prevented with this feature? My guess is that most of the powering downs have a good reason, like a need for fiat money.

My guess is that most of the powering downs have a good reason, like a need for fiat money.

I disagree. I'm powering down because there is no reason for me not to power down and nearly every other individual with a considerable stake is doing the same.

If there are literally zero consequences to powering down and only upside (liquidity), why is anyone surprised that the sell pressure is astronomical?

Reason to not power down is to avoid inflation and keep your voting power. If you use your account regularly for curation, you'll get more money for it if you don't power down.

I don't mind that big whales are powering down. Yeah, it's causing sell pressure, but in the long run it's necessary to redistribute SP. This is a great time for newbies to get in cheaply (of course it might get even cheaper in the near future). When the price starts to go up again nobody can claim that they didn't have a chance to buy cheap steem.

Reason to not power down is to avoid inflation and keep your voting power. If

You can avoid inflation by simply selling the steem that you power down for BTC or fiat (or steem dollars if that's your thing). It's pretty absurd to suggest that someone never spend their money to avoid inflation.

If you use your account regularly for curation, you'll get more money for it if you don't power down.

Yeah, money locked in steem power that you can't spend if you don't power down.

The reasons you cite are great reasons not to power down, as long as the people with steem power are OK with having a huge chunk of unspendable assets that they can only ever use to get more unspendable assets.

But most people want to buy hookers and cocaine and play blackjack. Actually, forget the blackjack. Ans to do that they need real, spendable monies.

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