As far as if investors would show interest, I think it depends on incentives.
If you make a list of all the incentives to hold regular HP, you’d have to have much higher incentives than that to get users to risk burning liquid Hive for the greater rewards.
But, as whales and other users who have more assets to risk begin to do so, it would create pressure for almost everyone on Hive to allocate a % of their Hive to PHP in order to stay competitive in curation rewards, bandwidth, and other incentives HP gives you.
I would think there would have to be a threshold at which PHP users are reaping from the rewards pool at a higher rate than regular HP, that it would give incentive to allocate some of your Hive to PHP.
The reward from that is the overall total liquid Hive is reduced creating more value for existing liquid Hive, and you gain the ability to gain additional rewards from the risk of committing to a permanent stake.
The downside is a permanent stake could go to zero if Hive fails long term. But a permanent stake should create more incentive than HP which can be powered down, and users cut and run.
I have a feeling you would probably never see the overall % of PHP be higher than HP. People want the safety net to cut and run. But it would be interesting to see if and a how an addition of PHP would act in real life.
It will be an interesting experiment. You will have a very hard time convincing developers to implement the features. Tings like SMTs could bring a lot more into the ecosystem and a large part of the SMT development was already complete.
That could be true. But there seems to be incentive to burn Hive, and for PeakD to implement functions such as adding @null as a beneficiary, or burning Hive as part of promoting a post.
The problem I see is the incentive for the user to part with the value of the Hive token being burned. I think Hive could transfer that value, rather than destroy the value. It’s a win-win.
Also, PHP permanent staking is just one example. I’m sure with SMTs and Hive Engine tokens, other ideas of value transfer could be implemented: when you burn Hive you receive this token. Still seems to be a better value proposition than simply destroying value to increase value of remaining tokens.
Thanks for the feedback and likes!