Well said. The goal of the exit tax is to give a tax as a rebate to those that stayed powered up. I'm happy to see this has been received well by the community.
The 5% tax on power-up, where let's say half went immediately to those who are already powered up, is something that would add even more APY. The goal is to try and make as high a APY as possible to lure in investors. If you see, you can get a high APY and think, we'll I was going to hold this Hive for a little bit anyway. A 5% entry fee isn't much if the APY is, let's say 100%+ on top of being able to upvote your favorite authors.
But I did see a lot of pushback on the entry tax, so I'm happy to exclude it for the first iteration of this. Once people see how much the ROI raises when they power up with the exit fee, I think we'll see more support for various other fees that go back to the long term community.
The fee on rewards seems to be split, giving a exit fee to those that choose to get liquid rewards as appose to HP rewards. This obv will give much better rewards over time to the authors that at least keep some HP powered up at the expense of those dragging the price down the most. I'm 100% in favor of powering down rewards and selling them. That's a draw to the platform. I just think we can take a little from those that instantly get out to give to those that stick around. Seems reasonable to me.
I think the entry tax would be fine if the APR is very high as seen in some DeFi apps, but I am not sure it would be high enough on Hive toy not be painful. I agree that if there was a higher APR for buying, holding and participating, more people would be open to other fee structures - just got to get them in the door first :)
I think giving options for instant should come at a price that rewards holders as much as possible. The talk of burning/dao is fine, but I think keeping this simple and having a direct link between would see more community benefit for holders. DAO/burns benefit everyone, dumping only benefits the sellers. If the buyers have incentive to stake and hold, eventually the sellers have far less impact on price.
During extreme bull runs, even the mightiest of Hivers would be tempted to instantly cash out to catch a really big pump, with hopes of catching Hive cheaper. What usually happens is they sell too early and end up forming back in any way at a higher price. But some do pull the magical hat trick of buy low and sell high. I just feel everyone might be pleasantly surprised at how high the APY can get for Hiver power holders when lots of people are cashing out instantly, and all of that goes back to the hive power holders.
I got a better idea, a curve on the top instead of the bottom.
This idea only deters new accounts and takes Hive away from what it is, a blog site.
If it becomes just another speculation market would anyone be here? Probably not.
To break Hive is to break the entire block chain.
We don't need more "big investors" the game is already geared enough to the top end.
We need more actual bloggers and users.
But each day, Hive becomes more about speculation and attracting whales than an actual community.
Why would an investor come here?
Might as well change the entire code to remove staking completely and allow it to work without staking and keep it liquid.
I'd bet, this changes will prevent more people coming.
Those big stacks lose their value when no new money comes in.