Two big issues that are plaguing Steem from an Investors POV & a proposed solution
Talking to investors and hedge funds and being an investor myself, we've identified two key issues that are currently hurting Steem.
The two issues are Liquidity & The Hard Lockup (locking up Steem with no way to get our early).
In the investing world, you have hard lockups and soft lockups. In the crypto world, being so volatile and risky, hard lockups are very unusual. Most hedge funds or traders get into crypto for the volatility, which creates huge volume and demand. When Steem starts to pump, there simply isn't enough supply supplied fast enough for a big whale to accumulate sufficiently to make it worth their time to trade.
What happens is an artificial rally with noobs chasing the burning end of a wick until it inevitably goes out. The volume is nothing spectacular for long, quickly fleeting up then disappearing.
What I propose is a 5% fee that is burned for powering down instantly any amount you want. If the price of Steem pumps 50%, what is a mere 5% fee to catch dem gains? Keep in mind, Steem currently has around 8.5% inflation, so 5% burns on large amounts of stake can add up quickly. (I would have powered down 1mil Steem when it ran up to 10k Satoshis, poof 50k Steem burned from existence, and guess what, I'd bought twice as much on the dip).
People think 5% is high until Steem pumps to $1 overnight and you can't push withdraw fast enough xD
source
Allowing people, the scapegoat to power down early should increase the confidence for more people to power up. The sell pressure that comes from large whales instantly powering down is met with large buy orders looking to pay a reasonable price.
This all creates much more liquidity, which in turns makes Steem more attractive to exchanges. More exchanges mean more liquidity. More liquidity means more speculative investors. I can do this all day. It's a nice conveyor belt to solving two issues that currently plague Steem with its 1mil 24hr volume and thin ass sell walls, making volume even lower.
With thin sell walls come thin buy walls, who wants to lock up a lot of capital on a centralized exchange in hopes someone decides to sell. Traders want action, and when Steem moons, we'll get a lot more speculative action if there is a healthy supply of Steem on the market for sale.
I know it sounds crazy, but when you combine a healthy supply with a burn, the result on paper equals more liquidity and a lower total supply of Steem, which equals: insert rocket ship emoji
I'm a fan of burning, any way you can think of burning more Steem? Any way you can think of to add more liquidity to Steem? - Please post your suggestions below.
This seems like a great idea. I would support it. (Barring some security protections are put in place in case of stolen accounts)
Also I think we should be reducing the 3 month power down window to something like 2-3 weeks, even that would be more attractive to investors.
Great ideas overall by the way and keep up the great work you are doing with steem!
Great idea, but I want a 1 week lockdown option or a whitelisted powerdown withdrawl address incase someone steals my keys.
Also, a slopped slider would be great here. Kinda like post office. 13 weeks in 13 pieces is 0%, all after a week is 3%, all after 24 hours 5%, all now 7%.
Burn 50% use 50% to fund sps and reduce the 10% take based on posts.
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A one-week lockdown option + a whitelisted powerdown withdrawl is fckin amazing dude, that would solve it right? If someone had your account, lets say you can only change the whitelist with your owner key. If someone gets your owner key (you are fcked anyway, at least I am pretty sure you are unless you do some quick ninja magic) you can still have that one week lockdown option.
I think account recovery is still possible if someone nabs your owner keys and changes PW. It has a lockdown to be changed something like a week after PW reset.
But a 'default' safe setting would be good like instant powerdown is 1 week locked to enable if default whitelist isn't set.
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I like it. Seems bullet proof to me.
BRING THIS COMMENT THREAD IN FRONT OF @elipowell
Well, Queen Liz is amazing xD but this is a consensus witness thing, we need 17 of the top 20 to agree to add the fee burn.
I like the 1 week lockdown idea as well to go with @theycallmedan's proposal.
Resteeming this.
Why not make SP transferable?
If I'm going to buy STEEM just to power it up, I'd rather buy it at a discount from somebody who wants liquidity.
Big wave of FUD hits, I can get more SP for my STEEM.
Instead of a flat 5%, we let the market decide.
Security's still a concern, though.
Really like the Idea.
maybe with a Sp tranfer key can it be secure?
You can already transfer SP. THe issue is there isn't a market built for it and having exchanges trade in SP will be something that would take work/time. Without exchanges selling the SP it would be peer 2 peer, and you won't catch me sending large trades first xD
Plus we need a burn IMO, well not need but it sure as hell will help with the price.
I wonder if the Steem-engine guys could incorporate.
Wondering though, if you can already transfer SP, why don't hackers do that?
Take over an account and quickly dump all the SP into one they control to avoid the account recovery process?
The only issue I have is that this could Affect a person if their account was stolen but I think Steem now does better when it comes to account security so it's brilliant for me however let's say 5% for larger stake and 3% for lesser, theoretically it may still work. This way people will power up all their Steem cuz they know they can get it anytime either Small or large stake holders
This is very true. I never thought of this. Maybe someone could put a lock on their account of x amount of days if they know they won't be trading. However, you are right, it would decrease security. Maybe we can have a withdraw password or even 2fa on Steem? That would be amazing.
2FA would be a great addition. But I think for security reasons, instant withdrawal should never be possible. I am okay with 5-7% burn for a 2 week powerdown. 1 week is not much time to notice that you have been hacked. What if you are on vacation (usually without your active key in pocket)
Recovering your account is kinda useless, if the STEEM is already gone...
Maybe only let mater key use for this operation.
What do you think about "Great idea, but I want a 1 week lockdown option or a whitelisted powerdown withdrawl address incase someone steals my keys." - @abitcoinskeptic said this above.
One week probably would be too long of a time to wait for 5% burn fee. Because of the volatility in the markets, one might deem not worth losing 5%, since the opportunity sought may not exist in a week.
In combination with the whitelisted account if instant transfer to that account is allowed it could work. But now it complicates things a bit with too many operations.
I think there could be simpler solutions. 1) Users can enable/disable this feature on their account where changes apply after a certain period of time - 3 days to a week. 2) Power down the funds to savings, which is locked to 3 days by default.
I am sure devs can come up with much better solutions.
2FA would be nice.
Yes we could create a window really and from this window there could be something like a 2fa system which could prevent thieves from stealing funds to account
Yeah, instant power downs would be a serious security risk. That's always been one of the selling points of Steem, that you can recover your account with funds intact if it gets hacked due to the long 13 week power down period. I've seen it in action with @surfermarly, her master key was phished, but she was able to recover her account in time with no monetary losses. So this needs to stay.
But you could add to it, like an option to enable an instant power down if you're willing to take the risk. That would have to take some time as well though, like a month. That's plenty of time for someone to return from a vacation and stop any hacker activity. 2fa wouldn't hurt either in enabling this feature.
I like the idea. I was just thinking the same thing, instant power down may create a security risk if account is compromised. There should some sort of security implemention. Maybe instead of instant pd it can take 24 hours.
If active key is leaked or stolen, nothing would stop perpetrator from trasfering funds to another account quickly.
7%. 5% gets burned, 2% goes to other existing SP holders.
My man playing 4d chess.
I'm into it, check witness lol!!! That was a 4d move tho, u sunk my battleship!
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I really like the idea but it may negatively affect voting as people could shell out “free” votes. Power up, vote ten times, power down. Sure it would cost more than it’s worth but it may mess up the algorithm.
It might be a difficult thing to plug in.
I would gladly let people make 10 votes, power down and take a 5% hit then do it again. It may rekt the algorithm but it would rekt the person doing it much quicker, and burn a lot of steem off the market. Plus if the person is found doing this, which large stake, free downvotes would quickly take care of someone doing that. But that is something I didn't think of and is something someone could do.
Its not the faucets that give crypto value its the sinks.
Having such a major sink that would burn large amounts of Steem could possibly do wonders.
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Not saying I disagree. Just saying they’d have to extensively test this one.
I actually like this idea a lot. Put a dent in the inflation, which creates an upward pressure price, when you liquidate, which puts a downward pressure on price.
On the other hand, heimindanger has pretty well convinced me that staking in and of itself is kinda pointless.
I am interested in hearing more on why staking is pointless. Are you talking about staking on Steem?
The conversation was on this post: https://steempeak.com/steemleo/@nealmcspadden/leo-voting-windows-the-usual
Does it matter if we have more users succeeding here? One area I am concentrating on now is the dApps.
We have at least 20-30 now where people can post niche content, play games, gamble etc. I am testing them, polling about them, reviewing them, and helping others to get started withthem. I'm also promoting them on social media.
All of the dApps I push have big sp and vote for people who post with them. STEEM dApps are all at the top of the lists at thestateofthedapps and other similar lists.
So if you post random photos for free on fb, post here with appics. Pro shots go to ntopaz. Free restaurant reviews are paid at tasteem. Get your video paid at dtube instead of posting for nothing at yt. On and on we go.
Next up - is steem-engine a game changer? The ability to trade many coins and tokens while on steem seems to be to be a great step forward.
And as my last idea - does it help when people buy in at the dolphin/orca level to USE steem for their own work? The are not trading investors, these are small to mid-sized companies that invest to get promotion with steem posts and interaction. If we has 500 companies such as coingecko, would that help the problem you are talking about?
I wonder what you would be investing in if people are not blogging here. I try hard to ignore the price and just keep working. I find incredible new options many times a week. STEEM is a whole new world compared to when I got here two years ago, and far superior to that time.
Of course, I think everyday on how to onboard people and give plenty of Steem to help get new people on. I am not a professional marketer, I know people that are and try to get them to get involved with Steem.
Everyone has their skillsets, and mine is from an investor's POV. How can we get more people buying millions of Steem? How can I sell the vision I see in Steem that made me power up. That is my strength; thus I lay into that perspective with ideas to make Steem more investor-friendly.
I love the game theory of economics and investing and I wanted to stimulate getting new ideas to burn Steem, which will help the price. Never underestimate speculation, there are coins out there with a billion dollar market cap without a single platform built or user.
I understand your point, but STEEM's niche is to be a place where users can come. We do not need to find them. We get 1000 or more each week with a 95% kill rate. I promote, but mostly I try to help the little guys that are already here and trying. I think a vibrant community would help draw investors in.
What vision was that? Has it changed since you got here? I know you are a huge booster, and we all appreciate that.
My thought on coming here was that the beautiful posts would draw people to my weight loss coaching, and some of that happens. But my primary focus changed to Minnow Tips since I see such potential for great communication and such need of people who can do it.
Trust me - I want your investors here as much as you do. But I do not know if this is a good place for the pumping and dumping crowd.
But why not both? You keep doing what you are doing and good at, and I'll do the same and we can support each other? Your strengths are helping minnows, which is why I delegated SP to you. I would love to find more people like you so I can invest in them as well. If you need any help with minnow tips, feel free to reach out.
Sure let's throw that in this hardfork too!
While I don't think it is a bad idea, no one is going to buy steem until they hear about it.
Keep playing with little details that bug our own team... and it might make a few people happy and stop some of the bleeding, but it doesn't fix anything.
Saw this conversation today, in another place also. ;)
Everyone has their own POV and how they believe it can help Steem. As an investor, these are two issues that hurt Steem pretty badly. I have talked to a handful of bigger investors then me, who are currently not invested in Steem and when we talked these were the issues. When I presented this idea to them, they liked it. So I do see this as a bigger deal than just our own team.
I'm not opposed.
I'm more amused. :) The price went down we have to do all the things.
I do think it is a good idea.
They will look into steem when it has any real volume out there on the market.
Money talks!
I'm all for this idea, do it now lol !
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Great idea you shared on Instant powering down with a 5% fee. We have to deliberately grow steem with burns.
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