The reason for putting interest on VESTs is to partly compensate for the inflationary effects of having a reward pool.
I get that STEEM locked into savings takes 3 days to get out. What I'm saying is that VESTing does what you asked; a small amount of interest and the right to delegate. If something is in savings, I think you should earn interest but not be able to delegate from out of savings. Because, savings is frozen and delegation is in-use. In-use by proxy is still in use.
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I meant for STEEMit/STEEM to be able to use it for something, not the user.
Kind of like how a bank takes money saved to give loans to other people.
Hmmm. I think savings acts a bit more like a "Reverse Bank" does in a fractional reserve system; that is when you deposit savings you are explicitly taking money out of the economic system. Having savings act like a Commercial Bank and loan it is like our fractional reserve system where that money in savings in turn creates other money and so on. I'm not sure I'm down with that.
Steem is already "creating" money automatically through the rewards pool.
Sure. I just don't get how STEEM (as opposed to Steemit) would use the Saved STEEM for anything useful.
Just a suggestion for it to actually make value out of something, instead of giving interest out of nothing.
Nods. I guess you could say the value of saved STEEM is in it not being sold or vested. So, it reduces the supply and perhaps then raises the price.
So, the witnesses can set the interest rate to help control the price.
Actually. Good you mentioned Steemit. Because, while I have problems with the blockchain STEEM doing savings/loans, I'd have zero problems with a Steem-backed -UI (e.g. Steemit, Busy, chainbb, dtube, dsound, zappl) doing exactly this; allowing their users to Save their STEEM in exchange for intereste. Effectively, investing this money into whatever the maker of that UI decided. I think some SMTs will end up running this kind of model in their communities.