Fixing Steemit With Baby Steps Part 5: Permanent Vesting
You heard me right! It's time to burn our money! Steem is in a prime position to be the first blockchain to implement this revolutionary idea. We are already half way there when you consider the 13 week vesting period.
WHY?!?!?
Cryptocurrency is evolving quickly and Steem needs to stay ahead of the curve. By allowing permanent staking we allow the investors of Steem to make a choice: show allegiance to the Steem blockchain by taking Steem Power and attaching it to it's respective account, FOREVER.
Who Would Do This?
Well for one, I would. This feature shows the community that you are absolutely committed to the blockchain. Every SP that gets committed can never be transferred again, permanently increasing the value of Steem for all time because the supply pool will always be lower. At the same time, you still retain all of your voting power.
Reward Multiplier
During the first phase of implementation, there would be no reward for static vesting. Then we'd get to see all the SP that get's perm vested for no reward. Given enough time, we raise the reward multiplier to 1.05. Now all permanently vested SP is worth 5% more. Then we move it to 10%... each time we note the differences between stages to see what the best percent is. The perfect percentage will get the most SP permanently vested while giving away the least amount of free SP via the reward multiplier. We have to find the best ratio. If adding 5% reward to the multiplier will increase the value of Steem by more than 5% we should do it.
Static Steem Power is no longer currency!
By definition, money has to be transferable. This feature would throw yet another curve ball at the IRS and other tax agencies. How can the value of an nontransferable asset be determined? Clearly, this Steem Power is worth something, but only to the owner of the account. This would create a crazy amount of legal grey area that would have the establishment scratching their heads for quite some time.
Steemit Virtual Government
Part 1: The Vault
Part 2: Improved Filters
Part 3: Resteeming
Part 4: Hot and Trending Tabs
Very cool idea, upvoted.
This is an interesting idea given a fresh implementation of Steem with a fresh distribution, but given the current distribution I feel like it might put smaller users in a tight spot where larger users could both hold and burn at the same time. But still interesting. Definitely forces you to pick money or influence but not both.
Nice article on the insight of how Steem power works. I'm burning what I have to promote :)
Sounds good. How do you suggest someone get out of it if they want to. Let's say an investor wants to sell his stake and move on, what happens then.
Then that investor shouldn't permanently stake his stake.
It's the same as not being able to power down before 13 weeks is up; except completely unforgiving.