The LP is also the only thing propping up the yield on delegations and allowing HP farmers to actually cash out what they've farmed.
I don't really understand this point, even without an LP in place at all there'd still be the feeless books that people could use who'd wanna buy zing that's cheaper than what you can get from delegating HP if price and apr were to drop under. So it's not really the only thing holding it up and I know you buy zing and place buy walls as well.
Basically it's people who want zing but don't have the HP to delegate/want to use HP for something else vs those delegating for the APR only and instantly trading the zing off for a small hive profit margin.
The thing that I fail to understand why it doesn't get mentioned in these discussions is that LP'ers get liquid zing daily, isn't that also something the providers can instantly sell for a hive profit or to increase their position by selling half and outgrowing people staking/delegating in a major way? Like over 4x according to the APR's right now. Sure there's risks involved there when price moves but that same risk can be applied to staked zing as well for not having liquid zing when the price does move up by 2x like it did recently for instance.
I think staking rewards serve their purpose to reward those who delegated/supported us early and stayed staked over the years, there may be people who only delegated for a short time and then stayed staked so they're getting more zing for staying staked but of course lose out to those that also stayed delegated compared to those that supported early then instantly unstaked and sold off.
Best course of action is of course to diversify how you invest in zing, if you've got all eggs in the LP it depends what your intentions are, if you want value rather than more zing, you'll most likely get it once price moves up and you can also easily exit it if you think hive will move up.
But yeah, I wouldn't be against lowering staking rewards further but not 0 and increase LP a bit more, both of these serve no purpose to funding the team, which is different from LP's on other chains. Unfortunately we never got far with that and may have to rely on vsc here in the near future to help bridge zing to other chains where we then could offer different LP's with different pairs.