Power Down Delay Slows Price Discovery
Price is the balance point between supply and demand at any given point in time. The Power Down restrictions have the impact of holding Supply off the market. Much of this supply wants to sell at today's price, but cannot. The reason it wants to sell is because those doing the selling have earned a massive profit in a short period of time. Their costs are next to nothing. They will continue to sell until the price falls low enough that it isn't worth selling.
If Steem Power were liquid, then the price would fall toward this equilibrium faster in a race to the exits. The people that dump first win (in the short term) and the rest lose (in the short term). There will always be a market value and the price will never go to 0 so long as there is at least one person who believes in the potential value of the platform. My experience with BitShares and dozens of other cryptocurrency projects is that nothing with any community behind it will fall to 0. Even simple Bitcoin clones that have been around for years and offer relatively little innovation with non-existent development teams (Doge, Peercoin, Namecoin) continue to be traded with $100K+ in daily volume with marketcap in the millions.
Power Down makes Cashout more Fair
With a power down system, everyone is forced to "dollar-cost-average" their selling over 2 years. This means that whales that might have cashed out $1M dollars at the height of the bubble were only able to cash out $50,000 at the high prices while they have watched their remaining Steem Power fall in value to $200,000. Their average "cashout" price will not be the height of the market, but the market average over 2 years.
This has pros and cons. In some sense it limits the ability of speculators to buy and sell over periods of a couple of months. Anyone speculating over more than a couple of days is paying a very large inflation tax. The loss of this speculative capital impacts the liquidity and potentially the price. We live in a world where traders want the ability to move to the next big thing and having capital tied up in the last big thing is a much riskier proposition.
Author Rewards
Author Rewards are also designed to delay cashout by paying in Steem Dollars. You could sell immediately at a loss, or you could "trust and wait" and make more. As the price falls, the market value of the immediate author rewards also falls, but this is OK. Authors looking for a quick buck need to go elsewhere. Meanwhile, those who stay and work to grow the long-term value of the platform will gain in Steem Power. When the value of the platform finally grows as a result of years of effort they will be the new whales.
You may only get $10 worth of Steem Power for a post today. It might not even seem to be worth your time, but if you and others stick around and grow the value of the platform then one day your $10 will be worth $400 if we grow the platform to Bitcoin scale. If we grow to Facebook scale it will be worth $4000.
Starting a Company
Those who start a company are paid in shares that are worthless. They cannot be sold on the market until one day in the distant future the company is successful and has an IPO. The present value of the shares isn't what the entrepreneurial employees care about, it is the future value.
Likewise, a farmer who spends millions of dollars on land, equipment, and seeds works day in and day out in the hope that his farm will eventually produce a crop worth enough to justify his time and effort. The farmer is in the red clear up until the day he brings his harvest to market.
Don't join Steemit for the quick buck. Be glad there is someone willing to pay such high prices for a stake in Steem today. Don't fear the fall in market value, look at the incredible amounts people are still earning. Don't look at what you have today, look at what you could have in the future.
Steem is in the early adopter phase, those who work hard and help pull this platform forward will reap what they sow.
Changing the Power Down Period
If we were to reduce the Power Down period from 2 years to 1 year or even 6 months, this would dramatically increase the net present value of Steem Power while simultaneously increase the amount of liquid Steem on the market in the short term. The end result would be faster price discovery, but no one can say whether the new price will be higher or lower than the old price.
Some people speculate that value that is 2+ years in the future is discounted to near 0 value today (especially in the world of cryptocurrency). This means that longer time horizons have diminishing marginal utility when it comes to encouraging voters to behave in the long-term best interest of the platform.
Emotional Response
Despite all the logic in the world, humans have irrational feelings with respect to profit and loss. Slow steady growth feels much better than rapid rise followed by slow steady decline even if both curves end up at the same final value (long term growth). I for one prefer a slow steady rise, but that isn't possible until after the rapid rise has fully corrected and realigned. This will take time and won't happen until after fear, desperation, panic, and despondency set in.
Those who know about this emotional roller coaster can ride the waves and maximize their profit, but most people give in to their irrational emotional side and buy high and sell low. My preference is to sell high and buy low.
Don't let the market price set your opinion on the value of a platform, instead make rational buy / sell decisions that factor in both short-term trends and long-term value. This applies to any investment you might consider.
Steemit is brilliant and I thank you for everything you have done to envision and create it. I happen to disagree with some of your recent suggested changes, which appear to be short-term attempts to control people and restrict the money flow in what should be a free economy. I would much rather the team focus on ways to improve demand, give people reasons to come and stay here, and make it a user-friendly experience.
The next part sounds like a broken record, because I kept saying this in BitShares. We need to stop the constant changes, give it some stability/predictability, and let this thing grow organically. Please don't tweak it to death again. It's time to think about building the other pillars of the Steem ecosystem.
That said, I cannot even believe that you would write this article, which I think is unnecessary. (Your view is correct, but the post was not needed.) You are addressing one of the dumbest ideas I have seen presented (the fast power down, which is basically the equivalent of eliminating Steem Power). That idea was justifiably being ignored and it could have died an easy death if you guys had not given it this kind of attention.
You are definitely right about one thing: we need long term thinking. I want people who understand this is a long, hard slog, and that steady growth will come if we keep building it. If you don't believe in it, sell, and I'm buying more Steem. I am spending most of my time mentoring authors and helping several whale accounts find worthy, deserving content creators who have not gotten the rewards they deserve. Others are doing far more than I am to make this a better place. Let's keep building.
There are still lots of newbies who don't understand the logic behind this system, so I think it's great that @dan has time to explain basics to them.
I agree. Often, even the simple things need to be repeated over and over to be fully integrated.
Also doesn't hurt that the post made over $700.
I've been thinking this too. I don't mind my SP being locked away for 2 years under the current rules, but I have no idea what the rules will look like a month from now.
If making changes to the site took 104 weeks, we might find more people willing to buy SP.
lolo :))
Nobody forced you to power up. That was your choice.
I also chose to power up half the amount I originally considered, largely because I don't have any assurance the goalposts won't shift.
I understand steemit is in beta, so I'm not having a whine, just sharing my experience and reasoning.
Nail. Head. Thanks for that.
"Please don't tweak it to death again"
I share the same sentiments
Thank you for this btw! If more of the larger players had this attitude it would foster an environment where the site is a lot more likely to retain it's users instead of having them sign up and leave after several weeks of posts that don't earn a thing as they are ignored by the big players always voting for the same authors...
I like this guy!
I'm curious in what way you mentor authors @donkeypong?
Judging by how the price of Steem acts right now (going down almost every day), I for one am glad that there is no more supply hitting the market! I think the ones voicing the loudest are looking to cash out...
And those who are the quietest are accumulating for the future.
Yep!
The Steemit ecosystem is made up of a few thousand users , a single wallet service, and few exchanges. We are not mentioning the potentially revolutionary off-shoot projects that could be inspired in the next 104 weeks. The price of steem is falling, yes, but the technology will stay on.
For an economic experiment born a few months ago, it has achieved remarkable success. We just have to think how to bring as many users as possible and keep them happily stick to the site. I read about a Bar yesterday by stellabelle, amazing thought! The possibilities are just endless as steem very very mainstream.
The possibilities are indeed endless for Steemit and it is very exciting to be in early. As you mentioned, the most important for Steemit to become a permanent success is to keep existing users and attract new users who create good content. I am on steemit for a few weeks now and I am happy to see that work on the platform is progressing, this shows already that we are on the right track to success.
"Steem is in the early adopter phase, those who work hard and help pull this platform forward will reap what they sow."
I think this is what people seem to be ignoring right now. The potential here is so huge that even in the early adopter phase people are earning large amounts of money.
Zactly!
If Steem gets the level of Bitcoin, then the posts that earn 1 cent now will be earning $4, according to the figures given in this post. At that point I don't see why anyone wouldn't be on Steemit, earning $20 or so per day just for writing crappy posts, and much more for writing good content. And as those billions of people flock to Steemit, the market cap should rise to the Facebook level, and you'll be getting $40 for your crappy posts.
lol, that sums it up nicely. Here's $800 in future Steem for your comment. ;)
Why, thank you! It's not every day that someone just gives me a potential $800 for making a comment.
This is exactly what I said in my post "Should You Leave steemit ?" with the farming analogy and everything! I am working my plot and todays Steem price does not matter to me. I am not selling for today, I am trying to grow a better tomorrow.
Thanks for making me sound smart. I just wish more people had read the post. I was responding to another minnows post on how he was despondant about the future here and it wasn't fair that whales made so much blah blah blah. So I turned that comment into a post to let people know that if you think you could throw a few seeds in the ground and make a huge harvest, you probably should leave.
thanks for this! a lot of ppl are sure worried about the powering down... i for one am looking forward to much more to come :D great time to buy some SP!
Firstly I wish to make known my reverence and veneration for Steemit ; herein has given me my own little pool of Stock Market type shares in Steem. Never did I dream of owning a shares portfolio and best of all it only cost me my free time , not hard cash : )
So with my devotions of loyalty out of the way. Why can we not have a different type of power down voting system ? Some persons somewhere decided upon 104 weeks = 2 years. Maybe this is for some unseen reason that could be advantageous to certain Steem holders but remains clouded and unseen by little fish like myself.
Why not have a purely random method that alters days per power down. Currently a power down takes 7 days (once per week) as part of the 104 power down cycle. Change it to a completely random model . . .
A coin toss ; nothing is more random than a coin toss , keep the computers and random generators out of it. If people are electing to power down if the coin shows TAILS the power down occurs 8 days from the last toss.
If the coin shows HEADS the power down occurs 4 days from the last toss. This makes the power down cash out function totally unable to be manipulated by anyone whether they be a minnow or a whale. The four or eight day power down cycle would not affect anything overly compared to the current system , but it would make even the current system more trusted.
People would not be able to cash out suddenly and affect the law of supply and demand to much , but also people would know that no one can predict with any certainty where the market would be aimed toward in 104 weeks. I myself like the power down , but I would prefer it over a year ; but obviously everyone has an opinion . . .
Using a coin would increase the novelty value and integrity belief that the system cannot be easily manipulated : )
/ hugz ; )
See you on the BlockChain : )
I am for giving whales with more than 1% in the system the option to powerdown immediately and sell without a minimum price everything... This way there would not be the continuous selling pressure for 2 years and everything had a clear sky from there on...
Bugger them, if you let the 1%+ sell immediately this lets them profit immediately; why not make them work and wait like the mere mortals have to.
If they sell out today you still have 9,999 other Steemians all powering down every week and selling something so the selling pressure is never quite relieved at all . . . Make the damn whales work for their shares like the rest of us ; lol : )
/ hugz ; )
I see 2 years of clouds hanging over steem... I prefer to have them away... and this way we could grab some really cheap ones... instead of buying at a marketcap at 100 million we could buy at a marketcap of 500,000... ;)
Well I agree with you , I see years of uncertainty ; but I just want a level playing field . . .
You probably understand all this crypto-stuff far better than a newbie like me. Six months ago I could not spell cryptocurrency , now I am a shareholder . . .
So maybe you know when and how to buy and sell this internet barter coin , little old me I am just along for the ride to see how it all turns out : )
May your investments follow your plans and more steem power or more gold to you , for me ; I am uncertain of my analysis of what occurred last week so I have no hope of predicting the future like a trader tries to do : )
/ hugz ; )
I am here for the journey ; I must travel along for the journey since I have absolutely no clue what the expected destination is likely to be : )
I look at Steem Power as an annuity that I am building for my future. I understand that new markets are always volatile and so when looking at an investment for the long term you must look at the platform's potential. Steem has that potential, not just with Steemit, but other paradigm disruptive side chains that could be developed for Steem. Steem is so much more that Steemit.
Great post.
The main issue is (in the crypto space) people think they're investing when they're really speculating on coins they think may go up (x2 or x10) in value, over the short term.
Thus investing on something for 3-5 years scares them shitless.
Eventually the right type of investors (and investment) will gravitate towards Steem/ Steemit as long as the the community keeps growing and delivering things of value, as it's doing.
Thank you for this post, this morning I was thinking about stopping my power down, and this post sealed the deal. My power down is now stopped and I will begin to power up the steem dollars I have over the next 10 days, as I think the steem price will go lower each day.
The real reason some people are asking for a quicker power down is because experience has taught them that most cryptocurrencies bite the dust within two years.
Think of how many coins have been hyped and delisted since 2014 alone!
The only way to reassure them is to find other uses for steem to build a proper steem economy. For example bitwala wrote a blog-post saying that they'd added steem but no-one was using it. People need to start using it to buy stuff. It's only when these secondary players start reporting huge steem usage that the steem price will start climbing again.
Yes. How do we do this?
You have made countless assumptions only considering one outcome or one train of thought. I agree with pretty much everything you are saying but this is only ONE possible perspective. Without getting into a massive analysis let me give you another perspective: By reducing the powerdown time, this will also increase the confidance of people powering up. Personally if the powerdown time was a week or a month I would gladly powerup :-) But in the current situation I would never power up because of the uncertainty with crypto currencies. Some people might like to powerup but unwilling to part with the funds for 2years+. I agree there would be a race to the bottom, but this will be fought between a small group of whales & traders, equilibrium will be reached, confidence will restored and people will powerup! With a 104week down time even with a price drop there is no incentive to powerup, there is no end to the downtrend because there's no incentive to buy with a 104 week power down period.
You have to see the many sides to this coin :-) From a new users perspective having their investment more liquid would bring way more confidence to investors. As confidence grows so will the price, the amount of people increasing their steempower and so forth...
I know there are many possible perspectives to this issue but I believe reducing the powerdown time will increase confidence, increase liquidity and add great value to investors of the platfrom.
Thank you for this alternative viewpoint. Currently, I am in a limbo period, where I have posted a lot as a minnow with very little reward. The 2-year power down prevents me from investing more than I already have, while not earning author rewards for my posts keeps me where I am at. I know I have high quality writing because I have earned a few hundred steam dollars on another person's account to help me gain followers. So it's not really a question of quality. But I think there needs to be more bridging that gap so that early adopters keep adopting. My post activity has slowed down because I am finding more success trading altcoins right now. But I really do want Steemit to succeed.
I agree, I too would like to see Steemit succeed as I think the concept or rewarding content creators is great. Only problem is under the current economics I could never invest in steem power and I fear many feel the exact same.
Discovery is probably the biggest issue. I'm not sure if adding a Promote This button is enough. One thing I have on my side is time to wait and see how things evolve.
How about building consensus into the system so people can vote on changes?
Oh yeah I forgot you and your BTS buddies control 90% of the supply. Out the window goes decentralization and your so called world of "anarchy".
I would love to be able to choose how I receive my blogpost rewards. Would something like this be possible in the near future to implement?
We are getting 50% in SBD now and 50% in SP, giving the option to raise the % of SP gained from a post to for instance 20% SB and 80% SP before the payout timer. This would eliminate the need to take the extra step and buy Steem on the market which depending on volatility can be lower or higher. Currently we only have the option to turn your SB into SP by waiting 1 week for it, and we all know how much a value of an asset can change over the course of a week in cryptoland.
you can turn SBD into SP by using the market to trade your SBD for steem and then powering up, if your happy with the current selling price it doesn't take more than a few minutes to do.
The convert option is for those who would rather have an adverage price rather than take the risk of buying during a spike.
Part of me thinks "This is a great post for people to read, everyone should read this,"
then another part of me realizes, you're still saying what I interpret as: 2+2=4.
Why is the obvious seemingly not so obvious to so many?
This:
This seems like a "duh". But it isn't. Still too many people do not grasp that.
However, with you and others relentlessly posting this sort of basic math content, I think a lot of people will be swayed to at least carefully consider their choices with Steemit, rather than just pump into it and then dump out.
I'm trying to consistently power up tiny amounts of Steem when I can, because I think long term this has real...well, power. ;)
I also power up step by step because I believe in the long term sustainability of steemit. In two years time I will a whale. Usually it takes 5 years to build a sustainable business.
The flipside is that many people simply extrapolate some numbers or make some skewed comparisons to come to certain wild numbers. Like: if Steemit has 1 mio users, the market cap per user should be this and that. And you compare shares with an explicit hot potatoe like a Steem token to get to the market cap numbers. What complicates matters even further is, that the majority's perception can turn to be right, even when it is logically wrong. If everyone believes the nonsensical market cap comparison to make sense, it actually does, at least in a practical sense. The longterm sucess will depend on the incentives people will perceive to BUY Steem Power. At this exact point in time, it is rather limited. Or did you buy any or know many buyers, even among the enthusiasts? Not powering down is not the same as buying Steem (Power).
@dragonanarchist, thanks for your post. Honestly, I really find it hard to understand the powering up and powering down on steemit, but I am in it for the whole nine yards. I believe I can see the potentials regarding the platform and it can only get better with patience. I have not come across any other platform that rewards this greatly this quickly . So as for me, patience is my watch word
Alot of good points @dantheman.
I would not power down now, i would gladly wait for wath the future could bring.
I also think many others here do the same. It is cheap power now, so for mee it is a buy stage in a bigg growth. I hope others do the same to get a bigger stack.
Steem dont have so much supply that i am scared for a crash. As long there is trust, there is value as you describe.
Keep up the good work :)
@dantheman - have a separate suggestion. Let's keep the account sign up SP in the system. As of now members can only begin to power down after they build SP to 10x the initial amount that was given to then on account sign up.
Once they reach 10x they can begin to power down all of the SP from what I know.
A small tweak to that could be:
You can only power down to that account sign up amount. Meaning that first 8 or 10 given always remains in the system. It may not seem like alot but 8 SP per 100,000 equals 800,000 that stay in the system. Think about that # at 1 mil members.
It's a small action but it will atleast assist toward slowing and stabilizing the exit of SP. It's fair too, because it is was unearned gifted SP. Well, in my opinion.
And I agree on the 104 weeks, it smooths the boom/bust curve.
Then it won't be "free" anymore, more like "rented" or "borrowed".
Don't really see how that would change much, the amount is so low that the volumes at a later time will eat it up without caring too much about it, I believe. But I understand your view that it would be a way to hold back some SP from the markets, but users don't like having been lied to about the free SP.
What if it was just called "free influence," without any promise to actually allow it to be withdrawn? I think that would effectively take care of any false hopes.
That would be a good way to word it. So long as people know what they are signing up for up front is what matters. I don't think it would deter anyone from signing up.
You make a good point, it's like the betting chip the pit bosses give you at a casino... you can bet with it and keep the reward but you can't just cash it out... pretty good analogy
One thing a lot of people have missed that deserves to be noted -- powerdown is not really 104 weeks.
If you have, say 50000 steempower, and you start a powerdown today, you'll get your 50,000 steem in something like 8-12 months. As inflation slows down, it will take closer to 14-18 months.
I've fiddled with the math, and it looks to me like if you take the %yield on steem, and figure out how long a 200% increase would take, thats how long it would take you to power down your full amount of liquid steem. After that, the rest would be interest income
IT'S BETA!!
B - E - T - A
C'mon folks. There's plenty of time to make it shine and enjoy the fruit of our labor in a few years. Sure, the early adopters and those that invested early are already getting rewarded. That's the way things go. BUT IT'S STILL EARLY. YOU ARE AN EARLY ADOPTER!
Let's see, BTC up, Steem down. Hrmmmm, if one were to speculate...
Great post. When I first started here, I invested in Steem and powered up. I was somewhere around 365 on the whales list by Steem Power after getting some author payouts. Since then I've been working to consistently create value and power up the results. I'm now at 318. On top of that, I have a small amount I'm beginning to run through the
SBD -> convert -> sell on internal market for SBDcycle. I've had more fun with my bitcoin investment in Steem Power than I've ever had watching that paper wallet balance go up and down with the price swings of bitcoin. I really hope Steem has a long-term valuable future and look forward to powering down some Steem at some point in the future when it actually means something. Until then, I'll keep building relationships and adding value.Aren't you losing money on that as STEEM gets cheaper?
No one can predict the future. If the price of SBD is at $0.80 then you've got a 20% buffer to work with, including a 7 day median price. It could go up or it could go down, but that 20% (assuming an $.80 price) gives you a big cushion to work with. You could hold, sell immediately, or sell later and there's always risk, but you're not going to get a $1 guaranteed purchase power on an asset priced below $1. That's a nice deal.
I'd speculate that now is the time to buy!!!
The best/worst story I've heard is a vendor I work with who ... a long time ago ... had an opportunity to purchase pre-IPO for a software startup. He had recently lost a relative and had cash in hand. He and his wife had just had their first child. He chose to invest in an education fund for his daughter instead of investing in Microsoft.
Statistically, he made the right decision.
I'm personally waiting for the liquid steem to increase above 10%. Until then, on a macro scale it's probably better to power down.
Why do you think that is better?
It's natural support. When vested steem is greater than approx 90%, then steem power holders have a negative rate of real return. When it's below they have a positive rate of real return.
This is because 90% of the printed steem gets allocated to SP holders and if this is above 90% vested then the return is lower.
Once that level is hit I'd expect buying, just based on structure alone. Or at keast a reduction in selling.
Thanks. That's good info.
Which is why in my opinion the volume has dried up recently. The market has figured it out and will wait until that point.
The market has dried up because no one wants to buy.
@repholder which is essentially what I meant :)
What a boat load of crap...
At least answer this (I will not ask why you considered giving 85% of the platform to yourself, friends and loyal few who happened to be around at launch the best move back then or now)...
Why authors are forced to receive 50% of their payment in highly non-liquid, 104 week investment in the platform? How this helps anything at all, in your view?
They aren't "forced", it is the terms. They earn influence and have a vested interest in the success of the platform rather than just an immediate payout.
Why do employers pay their employees in both vesting options and salary?
They are "forced"! Did you gave them a choice between straight pay (SD/Steem) and/or Steem Power? No!
If you have done that (probably with some benefit/incentive in taking Steem Power) , I would consider this a good policy... As it is now they have no choice, but "to have vested interest"... so they are forced into being "investors" and not just writers.
They are not forced to paticipate in the platform at all. Therefore, they cannot be forced to do anything else by definition.
You mean take ot leave it kind of non-forced, you mean.
I see, very welcoming for them... ungrateful of them not to take it even.
And this is exactly how real companies compensate their executives--partly with "liquid" salary and partly with illiquid stock options and restricted stock. No executive is "forced" to get paid this way--they can always go work for another company if they don't like it.
With Steemit, we all get compensated like executives rather than minions. Those that don't like it can work somewhere else. There's no "forcing".
Executives! Yes...
But poor day to day workers we are talking here. Independent contractors is even closer than regular employees when describing the writers.
But if you all pretend to not see it, it is fine. It will simple fail due to its executives (aka you, ben above/below and all above dan) behaving all knowingly ...
They are not forced... they can choose to not write the articles... as a writer you can also choose to ignore the Steem Power, as if they were not existent... and rethink if for the SD pnly you are willing to write your stuff...
Sounds like you should get some people together, clone steem, and set different rules. Spell it backwards, call it "meets." One thing that always disappointed me about bitshares was that nobody ever created a flock of bitshare clones. There are so many parameters in steem that would be fun to toy with - I think it would be spectacularly fascinating to try it.
It must be harder than it looks to cloce a community!
They are not forced to do anything...They are not "forced" to join in at the first place!
There are some rules! Good or bad we are free to choose if we participate or not. Nobody forced anyone to join steemit. Of course that doesn't mean we will stop to make suggestions to improve steemit and make it more appealing... but that is different from making that kind of "accusations"...
Yes they should leave...wait their are already doing it. That's what we want them to do, right?
If it was choise on that the value vould bee 1 cent maby non value at all.
You are talking as if they were obligated to pay you! they could simply just give you the SBD and not long term investment, think of it as an extra gift! you should be thankful there is a place that actually reward us, I agree is not yet the best system but then again is just an experiment.
Maybe a "deny stake" option should be made in Steem, so you still get all Steem Dollars from posting rewards but you don't get any of the SP, which either goes poof or goes to curators.
Some of the complaining that I see in this thread and others defies logic. "Forced" To accept payment in vested Steepower? I was paid to join and so was everyone else. I've had fun learned and earned.
I will continue to try and improve my writing and networking and I am definitely here for the long haul.
I feel blessed to have had this golden opportunity handed to me on a silver platter and I plan to make the most of it!
@kus-knee (The Old Dog)
be nice
Nobody's forced. Have you ever worked freelance? It's hard work and amazingly competitive. Having struggled in the freelance world for years, this is a breath of fresh air. I've been paid more per article, but the parameters were set, I had to fit that box and the jobs are still hard to get.
If you want to freelance, then go find freelance jobs. Then you get paid as soon as the job is complete and can move on. The terms of Steemit are clear before anyone puts pen to paper. It's pretty strange that someone would jump in and start crying foul. Take what's offered and help build it to its potential, or find something that fits your vision better.
What should be reduced is the SBD to STEEM transfer delay. "Convert to STEEM".
1week is long and if incentives taking the Steem Dollars out to trade for Steem in exchanges.
It should not only be (almost) immediate, but offering a +x% premium on the transfers. (Ideally...)
I have heard people complain about this but it has never taken me a week to convert my SBD to Steem. I click on my SBD, go to 'Buy or Sell', sell my SBD for Steem, which usually occurs in less than an hour, then I convert to Steem Power. I've never taken my Steem out to an exchange. Does it take a week to get Steem to an exchange?
I speak about the Convert to Steem button.
This button then should disappear.
Buy/Sell is the way to go.
If you use the transfer option you get 1usd worth of steem based on the median price of the last 7 days. If you were to go to market now you'd get around 0.78.
The discount of the SD to an actual dollar is a leading indicator (in my eyes) of what will happen to the price of steem.
So it's all a bit more complicated than just buy/sell.
Great post. I think the 104 week powering down process is a brilliant feature.
Yes, let it like it is.
I like the way it is set up, I receive half now to improve my life and the other half is set aside so I can retire early. I can't see a reason to power down, I trust that the price will skyrocket in the next few years with the influx of new users and attention.
We just need to find a way to get more SP in the hands of curators. @kryptik wrote a very interesting article about this and it needs more attention so we can grow Steemit faster, I linked his article below.
https://steemit.com/steemit/@kryptik/content-creators-it-s-not-about-you
@dantheman
Where do you believe we are today? Do you think Steemit is in the IPO stage or still in development? It's pretty clear to me that we're still in the latter, given all of the discussions about fundamental changes to the voting and rewards system - while still in beta.
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As always, people need to recognize this us still in beta phase. The potential steem holds is infinite. The community here can accomplish anything if we work together. I completely agree with the way the payout is currently for power down, and I appreciate the way that you've outlined it here.
Excellent explanation! I saw the value of this right away.
It definitely encourages people to be "committed" to steemit in the long run!
Dan, I am in for the long haul with my project as this platform is the only of its kind that has ever compelled me to participate. That being said, it is somewhat difficult to have a clear understanding of exactly how things work. Doing what I do, not knowing the operational parameters can be wickedly deadly so I try my best to gain as much knowledge as possible. I have had a rather difficult time in gaining information about best practices with regards to creating content for the steemit platform.
I dearly want to participate and grow with the platform, and to do this it would be very helpful if there was some forum for authors / content creators to be able to gain very precise and clear knowledge of how to work within the operational parameters... information that is simply / clearly not available and for the novice in this platform such as I, very confusing.
Exactly. Trading is based on speculations. I am all for 2 years power down period. Probably, longer.
It will be longer as long as you remain active while divesting. ;)
Which is exactly what has happened. The whales are powering down and cashing out as fast as they can before a STEEM coin is worth complete zero - and it's nearly there. From $4.42 each to $0.72 each per coin. That's .0071 to .0011 in BTC (Bitcoin) terms.
Here inside Steemit land, there are hundreds of fanatics who don't look at the STEEM coin price and therefore don't realize how shaky the foundation of Steemit is.
Outside of Steemit, on the exchanges, "STEEM" is a laughing-stock coin. People on the exchanges who ask about STEEM are told two things: to look at the overall chart, and then to go to SteemWhales.com and look at who is powering down and cashing out while the getting is good.
Without people buying the coin on the exchanges (which they aren't), there is no money to keep the payouts going and the lights turned on in here.
Shhh nobody wants to talk about this.
Great article thanks for posting!
I believe in Steemit!
Agreed, that's the only way to trade, unless you think the value will endlessly decrease because of a specific cause...then it's best to just suck it up and minimize your predicted loss.
Like Facebook - interesting)))
Agreed!
Have you ever considered reducing the % in SP allocated to accounts that are powering down vs not powering down?
Maybe just during the distribution phase?
Otherwise I agree with the rational approach you've put forward.
In fact I think lower prices are better at this stage, they will allow for a wider distribution of power.
I too think we should tweak the advantages of those being constantly powered up between others powering down.
This gets too complicated. The learning curve is steep enough as it is. This has always been a problem in crypto.
What? So u can not only upvote some useless junk (reference), but also change the powerdown period? The wolf & sheep scenario is getting clearer to me in every passing day.
To be clear, we are not suggesting to change this. I was defending the original design. The people calling for a change of this are off base.
Some good points, all a bit beyond me how it works but followed your description and it makes sense. Do you have any plans to make it easier to buy steem power straight of steemit with paypal etc. Im only just getting the hang of BTC and its a tricky world for the noob. Growing a larger user base that sort of thing needs to be easy.
Sure but wait the day you need that money ? Basically I get 1/104th per week. Except if I make hundreds of thousands $$ the amount I get won't help me. So yeah there are disadvantages in not powering up with your money but I cannot invest like that.
Aw man. I was just going to write a post about author rewards & focusing on steem power for the long run. Oh wells. Might still do it to isolate that topic. =P
What are your thoughts currently on the inflation rate of Steem so far? Is that working according to plans? Is there a hot potato effect with Steem? Just curious because I always feel like not wanting to keep STEEM any more than a few days. I was just wondering what traders thought and see if there was any demand for trading other than for daytraders. It seems the choices are not invest, invest in the long-run with SP or park money in SBD, but there's not much of a middle ground. Would you consider reducing the inflation rate to foster more trading activity? Just curious.
At the moment, wealth distribution curve is well leveled (in my subjective opinion). More and more new authors get their well-deserved reward. Yes, this is not often here to get a reward of thousands of dollars, but you'll see a lot of 20-200 dollars rewards. And this is good. Look at how the new release 0.14.0 will affect on it.
This has solely to do with community projects (backed by "good" whales) like @robinhoodwhale and curie.
Yeap,I know that, just talking about the platform as a whole.
Thanks for writing about this Dan. I was there in the early days of Google Plus, continued to build and prospered because I stayed with it. Imagine for a moment that I stuck around even with no financial reward.
Now take Steemit, it is a very similar situation. The only difference here is that I own a piece of the future. Keep up the good work. I for one look forward to what we can achieve with this platform.
We want long term stake holders not short term.
Awesome thank you for sharing this! :) i followed you perhaps u look at my blog and u find some graffiti that u like! <3 kalipo
Have you thought of adding a shorter term Steem power, so there are the two year Steem power and maybe 1 month or 6 month Steem power. This one could have less impact than the long term Steem power. Maybe it boosts your votes by Hal as much as long term Steem power. The drawback is it makes things more complicated but it may create another funding source.
Thank you for sharing this material, I like what you posted. Thank you so much
Steem - this is the future! I will done with steem!