Great post! I agree with a lot of this... I think a lot of the selling was just because of the way the system was set up, the largest holders were able to power down while still collecting enough SP interest to not really lose any stake in the platform... Now that is changed. I actually expect to see a decrease in selling...
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This has never been the case. The % stake always decreases from powering down. The SP balance increases but the total money supply increases even faster.
Anyway, that will be more more clear after the fork with lower inflation and faster power down. The main advantage to this fork is making the system easier to understand.
Yea I was wondering about that right after I posted it... I didn't word that correctly... My meaning was that total SP holdings didn't decrease from powering down not that their ownership stake didn't decrease... Thanks for pointing that out :)
I was hoping for more like a 6 month to a year power down time frame... we will see how this works out in a matter of weeks.
as it works up to now, the power down rate is slower than the interest. people will probably let a few payouts go but then power up again because they will lose vote power and curation rewards. So I think faster payouts will give people more choice and the drop in inflation will suck out more supply than powering down users will be able to put on the market. A rise in demand will make people hold more than before where powering down did not reduce their relative positions like it will after the fork.
Yep, I concur :) I look forward to the changes. I think we see much higher steem prices in the coming months.
I agree with smooth's assessment about stake vs. SP. I could have been clearer about that in my post. The way it is right now, it's possible to power down and sell Steem without necessarily losing any Steem Power from week to week - IF you are actively receiving rewards from posting and curating, and even from being a witness. And I suppose there's nothing inherently wrong with that since work is being done, but it can contribute to a seemingly endless cycle of powering down and selling from the same large SP holders.
The 13-week power down schedule effectively eliminates that possibility.