Is it a better idea to power down with a hard-fork instead of a market dump?
The tanking of steem price might have unintended consequences. It might destroy the momentum that it was carrying. Instead of dumping millions of steem on the markets and killing the enthusiasms of the markets, could a hardfork be instigated?
The average volume in the markets are 200K to 300K/daily. The @steemit account is trying to power down 60MM worth of value. If we do the math, we are not looking at a rosy picture as far as momentum is concerned. Isn't there a better way to do this, maximizing happiness for all while preserving steem's momentum?
60MM to take out over the next 2 years means 83K/day dump. Current steem market size is 200K/day. That's 41% of the entire daily volume that contributes to the sell wall. This will fracture the fragile market.
COULDN'T HARD-FORK SOLVE THIS PROBLEM WITH A CONCENTRATED ACCOUNT?
The powering down takes 2years. Steem exploded from 20ksat, so at 7-8x prepump price i still think its healthy. Plus it allows new users to buy in much cheaper so i wouldnt consider it totally bad. I personally dont think a fork is needed.
This can create tremendous uncertainty in the market until most of the steems are taken out. Markets are very fragile little thing right? We don't want to break the goose that lays the golden eggs. The force behind popularity of a platform is it's momentum. Momentum is price driven. I think some part of it just needs to be forked out and eliminated. The system is still in it's beta stage for God's shake. Why kill the markets? It's not a wise move.
In a post that I created yesterday, I explain that powering down with the current compounding interest rate of STEEM Power does not reduce your ending balance of STEEM Power.
You might be interest in taking a look at the post:
Power Up your Retirement/Savings with STEEM Power!
I wrote an earlier post about STEEM Power's compounding interest rate in:
Everlasting STEEM Power; Why you should Power Up!
I do not think the STEEM Power whales will ever lose enough STEEM Power to lessen their influence. But I do believe that some of today's minnow can attain whale status in the future.
Steem on,
Mike
Sure! but 60MM to take out over the next 2 years means 83K a day dump. Current steem market size is 200K/day.
That's 41% of the entire daily volume that contributes to the sell wall.
I agree that it contributes to the sell wall. The 60MM power down of STEEM Power contributes 577K a week to the amount of liquid STEEM. The liquid STEEM does not earn any interest. I'm not sure whether the 577K STEEM units will be dumped on the market all at once or spread out to dump about 83K on the market each day.
Either way, as you pointed out, it contributes to the sell wall that tends to cap or even lower the price of STEEM in U$D.
What I was trying to point out is that the 60MM power down given the current compounding interest rate of STEEM Power will not reduce the account holders 60MM in STEEM Power. Thus, a much large power down and dump of STEEM onto the market is likely in two years from the account holder, @steemit.
Thanks for replying,
Steem on,
Mike
they could have hardforked and solved the problem.