An infinite series of teeny-tiny payments isn't anything to feel good about though. Gotta power up a lot for the powerdown payments to be any good.
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An infinite series of teeny-tiny payments isn't anything to feel good about though. Gotta power up a lot for the powerdown payments to be any good.
What do you mean teeny-tiny? Most whales cash out at least 10k every week.
What's the difference between cashing out 10 times 10$ or 1 time 100$? None.
They had to power up a lot to get to that level. Otherwise, you only get steem power by rewards and your powerdown payments are, as I said, tiny.
Responding to @snowflake here because of nesting.
Assuming you are earning no additional SP through blogging and curation, it is not infinite money.
When you power down, you take 1/104th of your vests and cash them out for steem.
Right now, the SP incentive rate is very high. How SP incentives work is that they increase the steem value of your fixed amount of vests. Because of that, the steem value of that 1/104 of your vests that you cash out is actually less than the increase in value (due to SP incentives) of the other 103/104.
However, the size of this cashout will keep increasing (because SP incentives are making each weekly 1/104 a little more valubale in terms of steem), and the amount of SP remaining will keep decreasing. In addition to that, SP incentives are going down. At some point in the 104 week power down, the equation shifts, and the value of the 1/104 that youre taking out is going to be more than the increase in value of the x/104 that you have left.
At the end of the 104 payments, your balance will be 0.
Think of it this way
So basically you have 1/104 vests cioming out, In order for you not to lose steem from your balance, the value of that 1/104 in steem has to be less than the total increase in value for however many payments you have left. Right now, it looks like weekly interest is around .04, so you actually wouldn't see a decrease in your steem power while powering down until the 79th payment (which is around 18 months) if it stayed steady. But it is decreasing every week as we get out of the distribution phase, so that .04 interest rate is going down fast.
However, you are correct that the amount of SP a user has will not effect this process.
ALthough, kind of crazily, your actual SP balance will be higher than 104 throughout almost the whole 2 year proccess. It will get as high as 532.77 around the 79th week.
You'll get your SP balance of 104 out in just about 41 weeks.
Starting with 104 steem, your full 104 week powerdown will get you about 1500 steem.
Your last (and highest) powerdown will be around 50 steem.
Of course, this is assuming that the current rates endure, which they won't.
That's not true.
When you power down you still get the exact same amount of SP interest than someone who is powered up. You even get a lot more than what the actual power down gives you every week hence you have infinite money, hence infinite ressources to kill the price which is why the price is on a continuous downtrend and won't reverse until something is done to this flawed system.
If today I decide to get out of steem completey and withdraw all my money IT IS IMPOSSIBLE. My steem power balance will always build up even if i cash out every week.
I never said the interest rate changes depending on whether you are powering down or not. The power down rate is faster than the interest though. After that, you also have to consider the loss of value due to inflation. If I just sat here collecting weekly power-down payments without earning anything to replenish my balance with, things would start to get pretty uncomfortable after a while. My point was that you have to power up a lot first in order to get to the level where power down payments are even significant.
Getting out of steem completely isn't impossible at all. I know people that did it just by selling the keys to their accounts. Easy enough.