Disagree. The illiquidity of SP is the thing that protects the steemit model from dumping by whales. The reason the steem market cap is high enough to bring real money to these posts. SP should stay account locked. Liquidity should continue to come from SMD conversions and paced powering down. The system is well designed. Don't break it.
It's good that it's hard to buy too much SP.
Indeed.
But I'm advocating that they allow Vest title transfers. E.g. satire own 100 Vests, transfer to @ryan-singer for 0.1 BTC or whatever
This would prevent dumping. And make SP more liquid.
In that case, liquidation could take as long as it would take for voting power to regenerate from a particular %, to discourage it.
I can't reply to @matrixdweller ... but it would be trivial to make it so that voting power is weighted based on current voting power of either account and steem power.
This would eliminate the abuse that you readily point out.
Not if you put a 12-hour waiting period on it. Like with SBD.