RE: Quick Update about the vote for the next release
i have read this post and i do see and understand that Steemit.inc feel that there is a need to change the economy of steem production.I am sure they know better than I and so I trust that this is the correct road to take to help alleviate the problems of market price we are all seeing. I am probably a little out of my depth here with my questions and my concerns as I must say I have difficulty translating the economic coding in most of the posts and discussions produced on this subject I But I would like to ask you @jrcornel and @joseph. Have you concerns to see large amounts of Steem entering the market from already established account holders who feel they would like to take early advantage of the possibility of liquidating their assets here on Steemit with the 3-6 month power down? Surely at these prices it would seem a bit rash to chip out at this point in the game ? Also It has been announced too that the economy of steem will be reduced by 90.5 percent. Will this mean that my daily payouts of SP will be reduced by the same amount ?
Hello @gomeravibz. I am by no means an expert and don't have any aditional information above and beyond what anyone else might have. All I can go by is what I see, and up till now I see large account holders powering down at the max rate allowable. Judging by that it is a fair assumption on my part that there is a good chance at least some of that will continue once these changes are implemented. It appears some are not confident in the long term viability of the platform and chose to sell at any price... meaning in their eyes selling at $.12 is better then selling at $.01 instead of seeing a price that is already down 90% from it's all time high. So yes, I do have concerns what will happen when everyone is suddenly able to sell much larger blocks then they were able to previously.
Regarding your second question... I am not sure what that will mean to daily payouts. I know that a larger percentage of the daily rewards will go towards payouts which is nice but like you mentioned if the entire pie is shrinking doesn't that mean that the overall earnings will still be less than previously? If that is the case it will force people to commit to this platform longer term instead of showing up, writing a nice article, making a hundred bucks, and then cashing it out.
We are still in beta and testing things out and since economics is not an exact science we can't know for sure what the outcomes will be. I like a lot of the proposed changes but I just wish there was a way that we could restrict the previous SP that was accumulated from being dumped using the new rules... doesn't sound like it is possible unless a new token/currency is added to the mix though...
The good news is that at some point all the sellers will be done selling and there will be no one left to sell... at that point the price can start going back up. I just hope that price point is somewhere around this level and not significantly lower still...
Hello @jncornel, i appreciate that have given me a lengthy and concise reply to my question. Its seems we are all in the dark on this one. But then as you say we are in Beta and this principle of Blockchain economic reward system is new and complex. So no one can truly say what will happen. Does not give me a comfortable feeling I must say. But I for one will most certainly not be powering down as for me at this price to do that is a sure financial suicide as perhaps in retrospect i did come in to hard ,early and fast. But then that is the way it is and there is not much to about it now. It is not the period of time which will influence my powering down, but most certainly more the market value of the commodity which I purchased back then when it was higher. But then this is my case and not others. So I guess all I can do now is ride it out as I have been doing with the " hope " that the price indeed does go back up !! thanks again for the effort you clearly put into your reply to me !! Steem On !
If steemit gains traction and mass adoption over time... Steem could eventually go a lot higher... maybe even breaking those old highs. Here's to hoping! :)
Daily post payouts in SP and STEEM (or SBD) would be reduced by approximately 40%, when measured in STEEM.
No one can predict what market prices will be in the future. All such predictions are little more than guesswork.