It will greatly hurt liquidity for one thing. SBD only has the value it does (and at present not even 1 USD) because of the interest being paid. If you remove all interest from unlocked SBD it becomes a toxic asset that no one wants to hold. To trade and provide liquidity you must hold unlocked funds. This is already an issue with STEEM; introducing the same issue with SBD would make matters worse. A small interest rate bonus on locked SBD might be okay though.
It will greatly hurt liquidity for one thing. SBD only has the value it does (and at present not even 1 USD) because of the interest being paid. If you remove all interest from unlocked SBD it becomes a toxic asset that no one wants to hold. To trade and provide liquidity you must hold unlocked funds. This is already an issue with STEEM; introducing the same issue with SBD would make matters worse. A small interest rate bonus on locked SBD might be okay though.
great points. thank you for the reply