There is an easy way to redistribute power without suppressing the price, why not do it?

in #steem9 years ago (edited)

Recently I was discussing with @smooth and he told me that the whales selling is a painfull necessary process to redistribute power. This is not true. First there will always be new whales so this process will never end.

Then I wrote this post a few weeks ago https://steemit.com/steem/@snowflake/there-is-a-big-flaw-in-steemit

You can set up a system where as soon as people start powering down they stop receiving interest. This means that when whales decide to cash out, a lot of their interest is going to all the other users. The more whales power down the quicker the redistribution of power ( basically the same as today with a major difference which is that the price will not keep going down because many people will be incentivized to not power down )

Dan is trying to save the ship by creating a lot of small features ( promotion, option to be paid 100% in steempower, ) but this doesn't help because the people currently crashing the price are those who already have steem power and unlimited amounts of it.

Unlimited? That's right, the flaw is that even when you power down every week your balance is still increasing so basically people have unlimited money which means they have unlimited ressources to crash the price, so with this system the price of steem can only go down, it is basically design to go down. BUT the price reflect how many people can this platform support, the lower the price the lower number of people it can support, it is the indicator of the health of the system.
As we have seen the price of steem is designed to go down overtime because there is no good reason to not power down as your balance keeps increasing anyway, so how does steem expect to support all the new people in the future? It can't . Before trying to promote the site dan and the team needs to get the system right, as it is now it is contradictory and not sustainable.

You need to create some kind of scarcity feeling about steem power if you want to increase demand, and get a healthy steem market/price. The balance of people power down needs to decrease over time.

As it is now speculators have no reason to speculate because they know that unlimited supply means the price is going only one way and that is down, if you stop interest when people power down speculators will re enter the market because finally there is an incentive to stay in the system.Whales that keeps powering down for months will have their balance gradually go down which is normal.

But the system today where there is unlimited supply means the price will always go down and no one is going to buy it.

Don't listen to people who say that the only way to distribute power is to crash the price to pennies, this is totally not true and if the big whales and founder of the system don't push for a change then you know they have no intention to make steem a success, what I demonstrated above is not rocket science, if you have unlimited power to suppress the price the price will always go down and it will accelerate as more steem is being produced, anyone with basic logic can see that in its current form steem is not sustainable. Stop giving interest to people who power down and you solved both the price and the redistribution problem

I know i am repeating myself but this is a huge issue that is not discussed enough and I have no heard one reason why this shoudln't be done, so please tell me?

How do you support the system when it's price is designed to constantly go down? It's like the project aims at increasing user base but the underlying system aims the opposite..

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@smooth is right. Pre-mines always doom crypto-coins if the coins are NOT circulated properly. The crypto-landscape is littered with coins that did not! They paid the price. @smooth is a wise operator. Listen to him ;)

In steemit's current form it is necessary for whales to sell in order to redistribute power, so @smooth was correct in that way. But I thought that he implied that it is the only way which is not true, it's actually the least logical way. There is a much better way to redistribute power which I explained above.

That is your opinion - there are as many opinions as there are atoms in universe. I'll follow the @smooth Jedi Master for the smoothest path ;)

It's not my opinion, it's simple logic.
If you had the choice to decrease the price and redistribute power or increase the price and redistribute power what would you chose?

I am not here to make my choice - I am here to understand why I made my choice.

Your last comment sound very trollish, I doubt you have steem's best interest at heart..Ill leave it there.

"Shades of trollishness! Whatever next??"

Maybe you should've have been @thetrollhunter ;)

@snowflake Remember that STEEMIT is also still BETA! So things will be ok, just give it time.
full $teem ahead!
@streetstyle
ps, stop by and check out some of my other posts when you can, thanks.

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