It is functionally going to act like a permanent staking. I don't know if it would interest many investors. But I like the fact that you are trying to add value to the ecosystem.
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It is functionally going to act like a permanent staking. I don't know if it would interest many investors. But I like the fact that you are trying to add value to the ecosystem.
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!
Exactly. It's Hive being powered up, but permanently. Permanent staking.
Although, @yintercept did bring up a good point, it’s only as permanent as selling your account unless you program it in a way that you cannot do so.
If we reset the master password to the account, I believe that changes all of the public key/private key pairs of your other keys such as posting, active, owner, memo.
So, I wonder if it can be created in a way where you also have a burn key? If you reset the master password, it would destroy the public/private key pair of the burn key.
People sometimes change their passwords for security reasons.
For example, I changed the passwords for both my HIVE and SteemIt account after the Justin Sun fiasco.
I change my passwords anytime I feel that my password vault may have been compromised.
I would see any system that destroyed money in my account for engaging in routine security to be problematic.
BTW, if I sold my account; I would do so by simply giving the buyer the master keys along with the promise that I would never use the account again. When Ned sold out to Justin he did so simply by handing Justin the keys to the kingdom.
That is a flaw. If you had to change the PoW for security reasons, it would destroy access to the PHP. Hmmm. So that would probably not be a way to implement it.
I’m pretty sure though that anyone who receives a purchased account would change the master password. If you are storing value in the account, you’re not going to just trust they’ll never use it again. The only secure way would be changing the master pw.
That would be problematic if you destroyed the value simply by changing for security reasons.
Is there any more incentive to sell an account with permanent staking vs selling an account today loaded with HP or liquid Hive?
Quite frankly, I think that the ability to sell accounts is a good thing.
While individuals would prefer to power down and sell their accounts. Businesses are prone to think of their social media accounts as assets that they buy and sell as assets.
So, lets think about the entrepreneur Bob who likes to provide examples. He owns the company Example Inc which provides examples on domains like example.com, example.org, etc. Bob decides to hawk examples on Hive with the account @example .
When Bob decides to retire, he is likely to sell Example with all of its assets including example.com and the Hive account @example.
Okay, so maybe example.com is not a good example.
The basic point is that businesses tend to develop their social media accounts as assets. Business leaders buy and sell assets on a regular basis. This is what businesses do.
It seems to me that the HIVE community should encourage businesses to think of their account as an asset that they could buy and sell.
Quite frankly, I think that businesses would be more likely to buy HIVE and start using it as a currency than individuals.