Burnin' Money

SO, there has been a lot of posting on the topic of the four week power down proposal. At first, I was more sold to the idea of the four week power down, and that was for the obvious reasons. A four week power down would mean that I get my money faster.

This was how I felt before having read up on the issue further and learning more about how it may affect the platform as a whole. Earlier today, I found myself reading some more posts about this from, @mindtrap, and, @tarazkp. @tarazkp, mentioned that it would put downward pressure on market value if it were easier to sell STEEM than it was to purchase STEEM. I can understand how that could come into play, and in some ways I do agree.

After reading the post from my friend, @mindtrap, which highlighted the benefits that a downvote button for proposals would have brought, I began to write a response to his well written article.

As I began to write, I thought myself through a few things, and I came to a realization that I had not had. The correlation between currency value, appeal, and liquidity...

You see, at first I was for the four week power down, because I wanted to be able to cash out my dollars if I needed them, and I wanted to be able to do it quickly.

Then, I had changed my mind and decided that the option would probably be bad for the platform, based upon a few other posts that I had read about the downward pressure that it could create.

Not long ago, I had read a post by, @theycallmedan, which suggested creating a new proposal for an instant power down, which would burn 5% of the total holdings. After reading, I had agreed with this notion, but my feeling was more toward a higher percentage of burn with the instant power down option.

Now, let's get back to @tarazkp's post that mentioned the possible downward pressure created by a shorter power down.

For those of us that are die-hard, STEEM advocates, the idea of investing in STEEM right now, while it is low, is a no-brainer. The problem is, not every person on earth is a die-hard like some of us. In fact, this community is still in it's early stages and is quite small in comparison to mainstream social media. We all know that the value of STEEM is hinged upon large scale adoption. So, what am I getting to and how is this even relative to my reference?

Although it may seem that having a faster power down would put downward pressure on the market, it would increase the appeal to those outsiders that might want to get into STEEM and invest. If you were completely new to STEEM or even to crypto entirely, would you be comfortable investing in something that would not release your funds to you for thirteen weeks, even if it was declining rapidly in value?

If I wasn't already a lover of STEEM, I am sure that this concept would make me lean toward, NO.

The preceding thought, is why I still lean toward @theycallmedan's idea, of an instant power down. Though, I would suggest that the power down required a burn of at least 10% of the power down holdings. This would discourage people from doing it, but even if they did decide on the option, it would increase the rarity and value of STEEM as a whole when they did.

On top of that, it could draw in investors who are not currently willing to take a risk on a thirteen week power down of a crypto, alt-coin holding. If the liquidity was increased, then the draw for investors increases. This would affect the issue of mass adoption in a positive way, I believe.

All thoughts are welcome!

-Article by Jonathan Caleb Williams @badseedalchemist

The universe is always singing her song of knowledge and wisdom, but to hear her voice, we must spend time perfecting our own silence.