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RE: Question Thread #1

in Reverio • 2 years ago

As you're all aware the current power down takes 13 weeks to complete fully, if you could change this, what do you think would be the ideal down time and why?

2 years ago in Reverio by
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     2 years ago  


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       2 years ago  

      I wouldn't change the power down time. First, ask why we have powerdown times?

      1. The first is to prevent stupid leverage games with vote power. Since vote power takes five days to recharge, you don't want powerdown time lower than five days.
      2. To encourage people to hold and use stake.
      3. To provide price stability via slowing the flow from staked to liquid

      I think 13 weeks is a good number. It prevents people from including HP in their emergency fund calculations, while still giving reasonable access to their funds. It causes people to take to time to consider their commitment to hive before powering up and powering down. We want people to form long-term connections on hive, not treat it like a short-term transactional farm. So, yeah, keep the 13 weeks.

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         2 years ago  

        I think 13 weeks is just right, and the only lower number I'd accept would be 12 weeks. I wouldn't make it more than 13 weeks because we do want the Power Down to feel

        As the other comments have explained, the main reason you want Power Down to take longer is to stabilize the price. If a bunch of whales wanted to get out of HIVE and liquidate all of their stakes, other users will have 13 weeks to prepare for the gradual damage to the price that would do. If the period was shorter, the damage will be faster and more severe.

        I believe many Hive-engine tokens have a Power-down time of only 4 weeks, though. So that could give us data on how effective 1 month Power Down time will be when the scenario I mentioned happens in one of the tokens there.

        Have some !PIZZA with !LUV

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