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RE: A Brief Overview of Steemit's Hardfork 0.17.0 Proposal + My Idea for Hardfork 0.17.0
We have considered ideas like this internally. Something on the order of 25% would be necessary.
We have considered ideas like this internally. Something on the order of 25% would be necessary.
I was going to comment on this proposal to @klye , but since you're here... ;)
No comment on the rate, but I do have one on the timing: If it's to be done, it's best done now or soon. STEEM is over its bear market, and right now it's sidelining. It's been sidelining since November 3rd of last year, with two upward spikes in the interim. The flood of selling after the power-down schedule went down from 2 years to 3 months did knock the steam of out STEEM (sorry) but did not push it down so much as to resume the old bear market. It's been durn near impossible for dumpers to get it below 15,000 satoshis: buying demand around that level has been too strong.
Chart-wise, meaning demand-for-STEEM-wise, STEEM's price is sufficiently low - and STEEM is sufficiently demanded at these lows - to give its price a really solid floor. At ~14 cents or so, the new supply is met with new demand.
There's an old public-company management trick that's kinda greasy but accepted: "take-a-bath" accounting. It comes into play when the company's going through a rough spot earnings-wise. At that time, management "takes a bath" by writing down any dubious assets and incurring losses from the write-downs. The idea is, the earnings aren't going to be good anyway so announcing writedown losses isn't going to affect the stock price that much and will clean up the books for the next round of good times.
Allowing Steemers to power-down instantly with penalty at this time would have a similar effect: it wouldn't knock STEEM's price down that much because it's already been knocked down to about as low as it can go. Taking the bath now will get the supply-dump worry out of the way, and it wouldn't be that much of a shock because the market's already absorbed the extra supply from the schedule reduction.
tl;dr: The time to allow instant power-down with penalty is now, because STEEM's already been beaten down and it's been holding more-or-less steady. The end of its bear market is the appropriate time to "take a bath."
People will gladly pay for convenience and "fast service" from what I've observed as acceptable business practices. Wonderful news to hear that your brainstorming has also played with this idea.
Appreciate the reply and letting me know that this thought is already being looked at. I think 25%-33% range would be more than fair for instant power down option.
What was brought up on your end in regards to what would be done with the STEEM taken as a fee? Would burning it on @null or redistributing to SP holders be preferred?
I know while we're aiming for simplicity going forward with the development of STEEM and that this is yet another thing that would have to be proposed for implementation..The idea itself does certainly bring some more value if it managed to be done "right". :)
Cheers Dan. Have a good one sir!
Transferring to other Steem Power holders would provide incentive to stay powered up.
I believe this would be the preferred method as well.
Giving people more reason to purchase and power up STEEM can't really be a bad thing. Thanks for the reply and share of thought Dan.
Interesting ideas. I never thought about penalties to instant power down.