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RE: Ask Steemit: When are you planning to Power Down? Why?
This is a question I've had on my mind since I've joined Steemit. I also wonder what happens when many people Power Down. Would that not flood the market with more Steems? What impact will that have on the price of Steem? Nonetheless, my strategy has been to keep approximately 20% in Steem and 80% in Steem Power.
The inflation of Steem is the real reason why keeping tokens as Steem Power is useful. That said, Steem Power takes 2 years to power down, so it's not nearly as liquid. @dantheman has definitely set up the correct incentives since Steem Power helps you upvote stuff.
Also, I'd be lying if I sad that I understood how things Power Down. There's some Steem Power to Steem conversion rate which I still don't get, which has incentives as far as how much people keep in Steem Power vs Steem. Anyone know?