Those who wish to exit the platform would be able to leave faster through powering down than they could by abusing their voting power.
I hope this would be the case, but there is the possibility that the abuse could increase because the accounts involved would all be able to power down and exit in a relatively short time frame - or at least power down a significantly higher portion of the rewards. There would need to be some vigilance from other highly influential users that can counteract such abuses. This has mostly been ignored in the past.
I think it's a valid concern, but that the benefits outweigh the concern. Initially, if Steem goes up strongly (it did a little today), some of the larger holders might dump. This will result in a few things:
There will always be the concern of folks dumping in any market. Nothing will fix that short of stringent (and IMO incredibly unwise) controls. Eventually, IMO, the market will bring greater stability than attempting to change the nature of sentiment and profit-taking that is always present in free markets.
It's not the dumping that would concern me. I'm all for a shorter holding time. What concerns me is the potential for abuse. We've already seen the type of abuse that happens with a much longer holding period. If the ability to cash out relatively quickly is realized, then the abusers would certainly have no problem stepping up the abuse and cashing out an even larger percentage of rewards. That's why I said we would need other highly influential users to be vigilant and do what they can to counteract it, rather than ignore it. Ignoring it - even as it continues today - has largely been the preferred method.
Yeah, I get it. It's just that trying to control markets almost always backfires. And I'm not sure if almost needs to be inserted. Markets will always be abused, manipulated, etc. This becomes more readily done the more that they're controlled. If folks want to sell, then they sell. It'll get sorted out in the long-term and the market will eventually mature so that it moves at least someone what intuitively. Right now none of the cryptos really have enough history to peg them to any sense of normality, except maybe BTC. We see how much that's manipulated all the time.
I agree. I'm not asking for market controls, just to be clear. I'm basically asking for more/better involvement with abuse matters on the platform, especially when large stakeholders are involved. But you know what I'm talking about, so I'll leave it at that.
I don't understand how your concept helps with abuse. Abusers even if caught can still continue to power down and eventually cash out 100% (even if it takes two years). In order for this to be a meaningful deterrent there would have to be a mechanism for taking back stake from abusers before they could withdraw it. I haven't seen that even proposed.
Let them take their profits and go. Others will own their stakes and Steem will spread. One step back, two steps forward. More like 200 steps forward.
I agree. If we are going to allow potentially a lot of dumping all at once, is there anything that can be done to help absorb some of that selling pressure so that it is not so catastrophic to the price?
Dan & I will not be powering down during the three month period after this is implemented.
Very nice announcement to make. I would do the same if I'm involved with deploying it (as a witness).
As a minnow, I would also not power down, too.
finally! guys you should have made an announcement long time ago that you are not powering down anymore...
I think that is is good to shorten the vesting period because for many investors 2 years is just too long..
Let's hope that this will finally bring Steem on the right track again!
Ok, thank you! You have my support then! :)
Thank you sir, this should help I think.
This is really great to hear. I asked some tough questions of you and Dan in early October, and I'll take this as a response. Thank you.
and what about the steemit account?
See my comment to @anotherjoe below. It's not the "dumping" that is a concern here. If people want to get out, let them go. I have no problem with that. It's the toxic users that only want to abuse the platform that concern me. I would love nothing more than for them to power down and leave as soon as possible.