A designer knows he has achieved perfection not when there is nothing left to add, but when there is nothing left to take away.
Hive, as we know it today, is full of design choices. Most of them were made many years ago, by people who are AFAIK not around anymore.
Hivepower
One of those design choices is staked HIVE aka HIVEPOWER also known as VESTS.
HIVEPOWER can be unstaked, which takes 13 weeks, 1/13th is unlocked every week.
Rewards
Author rewards are paid either 50% or 100% in HIVEPOWER.
Curation rewards are paid 100% in HIVEPOWER.
Witness rewards are paid 100% in HIVEPOWER.
You might ask yourself: why aren't the rewards just paid out in liquid HIVE?
An answer could be that this would reduce "selling-pressure". But I'd argue that it's actually delayed selling pressure, like pushing things under your bed, making it look like you cleaned up, while actually you just delayed a full cleanup.
Or in other words: if people want to sell, they will sell. Rewards in HIVEPOWER in that sense are just a burden along the way and potentially also a way for sell-pressure to be centered along bull-runs, as many people might powerdown at a similar time.
Liquid HIVE = Freedom
You might have noticed that I've started using the liquid rewards option via the 3rd party @reward.app tool.
That way I'm able to dynamically decide when I want to sell my author rewards. Or if I want to hold onto them or even power them up, which IMO is a much better idea in a bear-market than in a bull-market. You want to be as liquid as possible in these times. (no finance. advice)
What do other projects do?
Let's take Uniswap as an example. You can "lock" your rewards within a liquidity pool, which gives you an ERC20 token based on the trading pair - i.e. ETH/UNI that makes you eligible for trading fees.
These trading fees aren't automatically available as liquid tokens in your wallet, probably because it would create way too many transactions (and GAS is expensive).
Instead, you can receive your rewards by removing liquidity. See image below.
That means, the only thing stopping your from receiving and potentially selling your earned rewards or even whole provided liquidity on Uniswap is a single transaction, which might be expensive, depending on gas usage.
Freedom + Incentives = God Tier Project
So, what's the gist of it?
I believe it's important to give users as much freedom as possible, no unnecessary lockups while also providing uber incentives so people don't actually want to sell their tokens, though they could so instantly if they wanted to.
I would like to have a burn fee of 3% for a 50% emergency unstake. Can only be done every 30 days and the fee increases slightly every time you do the emergency unstake.
This also gives users much more freedom and it is a good sink, too.
Without those "uber incentives" too much freedom is not gonna get us anywhere...
I like your thinking, but I also like the fact that rewards are converted into hive power, as it encourages engagement in the ecosystem. Incentives are always either sticks or carrots, and this is a stick, but sometimes sticks are more effective.
Like all incentives there are always going to be some that find a way around it, so the @rewards.app tool you mentioned provides people with an opportunity to get around it. You might find, some curators actually don't upvote content that uses the @reward.app as its sign the author doesn't have a long term commitment to the ecosystem, I don't have a view on this either way, but recognise different opinions exist on this matter.
anyway, back to topic, I think because there are options around it, there is a choice already, but we live in a world of apathy, and for those that don't make an active choice, reinvesting into the ecosystem maybe makes more sense in the context that its a default choice only (i.e. authors have the option to use @rewards.app too)
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Maybe a reduction of power down duration could add flexibility to how funds are moved around here. I do however think the ones that will sell will sell while those that will power up will do likewise.
While I personally have no problem with the current duration of powering down Hive I won't be entirely against reducing its duration. At the end of the day we want to be free as possible that's why we are on a blockchain I suppose.
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I totally agree with you. I'm not so important in the whole ecosystem as a minnow (actually red fish not even a minnow), but in my lay opinion, if the whole system is based on decentralization as it is, why isn't it on default to have the freedom you're talking about. Purely for comparison with the real world, we've all been in a situation where we "had to" do something so we definitely didn't want to, but in a situation where choice was an option it wasn't even a bit of a problem.
Also, when we're powering up (is anyone forcing us), short answer - no. It's what we do on our decision. I guess you know where this goes.
And this seal meme made me fucking laugh hahah, will never forget my first power down on Steemit after a first (and last) huge reward. In the end, all of that is here staked on my account as well...
Those design choices were made with a powerdown time of two years or something like that lol
I would prefer a shorter power down time, something between 1-4 weeks for example. 13 weeks is too long in crypto space.
It has protected many people who have been hacked. But maybe 13 is overkill
I absolutely agree with you. Let free markets set the prices and let the users have free choice and responsibility for what they do with their tokens. Sadly, however, it will never happen. Again, the powers that be seem too afraid to even broach the power-down time in the next HF.
I really hope other people set up @reward.app type DApps because at least users can buy choice.....hmm didn't you say you were working on a new project? lol
Best wishes and thanks for speaking out, not many people have the balls to speak out and disagree with the status-quo!
Great line of thought. Well I see your point and I totally agree with you. If it’s possible let the time frame for liquidity of locked up hive be reduced
Very interesting. I had never heard of that app before. I am pretty horrible at keeping my Hive liquid. It sits in my account and then I think oh, I will just power it up, I can always make more. It never stays liquid very long! I think they should offer a reduced power down period but you have to pay a percentage fee to do it. Then, that percentage gets burned or something useful.
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It's a choice on peakd so that's why its essy for him to set
Cool.
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I think, we must reduce the power down to 4 weeks or 6 weeks. 13 weeks is still high I believe. And even someone should be able to power down early as well with some penalty. It will be very good to have an option to receive all reward in liquid , but I guess, there have been discussions earlier, and we do not have a clear agreement.
Totally not interested in bending over backwards and changing everything to suit your needs, but yes, options are nice and by the looks of things, you have one that works for you.
i see it as a good way for new people that don't really know how things work to get some RC for transactions. how many new accounts that are new to this would power up, when they don't even understand the concept? also you get half of it liquid.
I am stupid and believe this is a long term thing so i don't really see the need to have an option to sell all my hive in few days.
I absolutely agree with you. Let free markets set the prices and let the users have free choice and responsibility for what they do with their tokens. Sadly, however, it will never happen. Again, the powers that be seem too afraid to even broach the power-down time in the next HF.
I really hope other people set up @reward.app type DApps because at least users can buy choice.....hmm didn't you say you were working on a new project? lol
Best wishes and thanks for speaking out, not many people have the balls to speak out and disagree with the status-quo!
We agree that Hive power takes a lot of time and people are free to chose. That's why there are modules like @reward.app which allows to get all rewards in liquids. So It's a choice of user. The beauty of hive is there are multiple options available and one can go with the one he feels better. So instead of changing HP and all that core stuff, @reward.app provides a good alternate solution.