The importance of having STEEM Bonds. This was highlighted in a recent interview with @Starkerz, @AshleyPeat and @TomasGeorge at Steemfest.

in #steem6 years ago

The importance of having #Steem Bonds

The importance of having Steem Bonds.jpg

Introducing #Steem Bonds to the #Steem Ecosystem

Over the last few months I have had a number of conversations with Matt @Starkerz about the importance of introducing #Steem Bonds to the #Steem Ecosystem, an idea that Matt himself totally agrees with.

As an Investor, Matt is extremely conscious of the fluctuations in the value of #Steem and one that he has on many occasions raised with me over the last few months.

His concerns are more than justified and mirrors that of my own.

#Steem Bonds

Both Matt and I strongly believe that the introduction of #Steem Bonds into the #Steem Ecosystem would have a huge strengthening effect on the value of #Steem and one that we are both passionate to see introduced.

In a recent interview with Matt @Starkerz, Ashley @AshleyPeat and Tomas @TomasGeorge at #Steemfest this point was highlighted and I wish to share with you the interview that took place.

I have timed stamped the interview to take you straight to the importance of introducing #Steem Bonds.

For the ones who have yet to see the interview, here is the link....

@Starkerz at #Steemfest | 15.45 2nd Nov | Being a Responsible #Steem Holder and the Promo of #Steemit


(Time Stamped at 10min 20 Sec)
Credit: youtube / @TomasGeorge, @AshleyPeat, @Starkerz

Locking away #Steem Power in return for Delegated #Steem

The Terms of the Bond would be tailor made and recorded on the #Blockchain, but in essence would effectively be an agreement to lock away the #Steem Power held by the Bond Holder in return for Delegated #Steem.

By simply locking away the #Steem Power for a fixed period set out in accordance with the Terms of the Bond would effectively take the #Steem off the Market for the duration of the Bond.

By taking #Steem off the market would suppress any fall in the price off #Steem.

In return for the agreement to lock away the #Steem Power off the Market, the Bonder Holder would be given a fixed amount of Delegated #Steem Power for the duration of the Term of the Bond.

This Delegated #Steem Power would effectively be the interest on the Bond.

I would be happy to discuss this further if it is something that the Community would be interested to see, however in the meantime I for one would be more than happy to take out a #Steem Bond for an allocation of my #Steem Power, if not all of it which is currently around 32,000 #Steem.

Thanks for reading.

Stephen

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Why not just raise the dividend payed to SteemPower holders from 2% annualy to 10% or whatever % is agreed on by the witnesses instead? This will give you the same results! And the coding is already in place!

THis is also a valid reward for locking steem away long term. These issues Should be put on the table and the community should decide how to proceed

@starkerz

I agree 100%

I agree with Matt @Starkerz this is a valid proposal to suggest. The suggestion I made to be allocated #Steem Power was one of many and along with your suggestion should be pooled with any other ideas and like Matt talked about should be put on the table for the Community to decide. There are many ways to put the idea in place, which is simply to reward those with an incentive should they lock out of the market their #Steem Power for a long period. In the interview Matt suggested any time frame and like Matt talks about 3 year, 4 years, 5 years, 6 years even 7 years works for me. Thanks for the contribution to the Blog. Stephen

It is Mathematically justifiable as the price keeps fluctuation. Most often, investors in steem move to join other coins on the bullish run leaving steem vunerable as the price is lowered until these investors return. This is something i have personally observed with bitcoin bullish runs. I think your suggestion can be tailored into a fixed deposit loan project like what banks do where you dont get access to your funds for a certain period of time and they give you interest over your money.

"I think your suggestion can be tailored into a fixed deposit loan project". Again this is a great contribution to the Blog. Thank you. There are so many ideas that effectively give the same intention and that is to reward those that are willing to hold #Steem Power for a longer period of time than the current 13 weeks. Thanks again for the contribution. Stephen

I like the idea of getting more payout if you are willing to hold your currency on the platform and not withdraw although the idea of trading the bonds and allowing for the market to decide the interest rates confuses and complicates things for many users that may not be as educated in financial trading and such. Trying to keep things simple to an extent will make steemit successful because the more that can use and understand it the more interaction you will get and earn more overall. I would rather get a smaller curation from a lot more people then larger curation from a much smaller pool.

Thank you for the comment, I appreciate it. I agree that trading the Bonds on the open market to determine the interest payment may confuse those unfamiliar with the mechanics of this and may be something that could be put to one side for those that find this sort of stuff confusing. Simplicity has to be the key to make the idea of "locking out" your #Steem Power for an incentivised reward work. Once again, thanks for the valued contribution. Stephen

Your welcome I think that maybe a reputation score limit or minimum account balance should be in place for those that wish to participate in that.

such type of blog is more important

Very cool post!
also thanks for sharing the video with us.

Thank you @stephenkendal for the very informative post...

Very cool post!

More and more things are coming out of Steemit. How are we, the not so experienced ones, know whether these are legit things are just someone trying to scam us?

I think it is a great idea. Would of course benefit the Steem price and prove investors still have faith. If SP is delegated to an account can that account still delegate that delegated SP? It would be a hard sell otherwise.

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