Nice explanation. My only suggestion would be to reduce the "inflation" or interest on steempower. This would alleviate market sell pressure. You could also reduce the time it takes to power down, this would put more steem on the market also reducing the inflation of steem power. Eventually there should be a balance between what is on the market and what interest is being generated. I believe this equilibrium will occur when around 10-25% of Steem is on the open markets for trading, tipping and marketplace transactions.
I dunno. I kind of think steem power is designed for the express purpose of generating an insane interest so that there will be incentive to hold onto it, buy it, and use it very wisely. The longevity is what gives it its power, the interest is what gives it it's lure, and the power is what gives it it's incentive to invest, at least at first. I guess it would need to taper eventually.
That would remove all the buy pressure. Why would anyone ever buy Steem if you reduce the value of Steem Power?
I never said reduce the value... rather reduce the ridiculous and unsustainable rate of inflation to something reasonable in which case I think more people would be interested in the platform. Also allowing more flexibility into and out of steempower would give stability and confidence in the markets.