Why 4-week SP schedule will make the Steem ecosystem more dynamic? Read this post.
There are many people who buy STEEM in the exchanges and hold them for some time until the value of STEEM rises, so as per their plan they sell it at a higher price and book profit. The span can vary from one month to 6 months or even more given the rise/fall of STEEM.
Generally, 13 weeks locking period in SP is a turn-off for such people and it does not look attractive for them. But as SP locking period is now reduced to 4 weeks, it suddenly looks competitive for such people and they will surely consider powering up their liquid STEEM into SP and may take part in proof-of-brain concept(which is 65% of the reward pool) and earn passive income in the form of curation rewards.
As 15% of the reward pool is for vested token holders, they can additionally earn interest rates for vesting their STEEM (SP). The APR is somewhere around 2.8% for vested token holders.
Generally the participation in Steem Blockchain governance is still average. But the locking period of 4 weeks in stead of 13 weeks also improve the participation rate as more people now will be willing to vest their STEEM tokens and may actively participate in Blockchain governance, so that is another positive development of 4 weeks power down schedule.
So now this ecosystem may be more dynamic and the new people will join this ecosystem very fast and those who are not interested in this ecosystem will also get a short exit window (4 weeks instead of 13 weeks).
Put simply, 4-weeks power-down period is a win-win case for the Steem ecosystem.
There was always a dilemma for an investor in Steem to whether power-up or not, owing to the long power down schedule, which was 13 weeks but now has been reduced to 4 weeks. This 4-weeks powering down schedule is a turn-on for both long term and short term investors. Short-term investors can easily become a part of the governance system of Steem.
It's not like that the 4-weeks schedule is only investor-centric. The bloggers and the non-investors will also be at the convenience.
Also, some people argue that a longer period is good for the price of STEEM token as it will curb the supply. But it is a turn-off for investors. So it's not going to attract investors.
Some people even argue that the power down schedule should be one week, this is also not going to help, as some people may manipulate without being cohesive to this community. There may be abuse and misuse of stake-power. So I feel that the 4-week schedule is the optimal thing for the Steem ecosystem. As it will attract investors and minimize the abuse of the ecosystem with stake-power. So it looks balancing for both sides.
Steem on....
Graphics- Original work.