Now I personally prefer 13 weeks, but I had a friend propose a company for outside investors who do not have the time to do things themselves and would want a custodian to take care of their Steem and either put them to good use or lock them up for interest.
After going through a lot of his points and why Steem would be the perfect blockchain for that, the only issue that we landed on in the end as to propose crypto investments/interests to outsiders who may not know how they work exactly or why. That was the power down timer.
To be able to offer a customer one of the biggest returns from their stake on our platform, you'd have to delegate the stake either to a bid bot or similar. Since there have been so many scams like Bitconnect lately seeming too good to be true and ending with actually not being true, the speed of how fast customers can pull out their investment if they so choose is limited. 5 days to get back your undelegation and then 13 weeks to power 100% down, since they don't know better it may seem like red flags to them.
So what are the disadvantages to a shorter power down? Instead of 13 weeks it would be 7 days similar to the time you need to fill in your account recovery if you've gotten hacked.
Savings is 3 days which already is quite sufficient and hasn't proved to be a problem to anyone, meaning they've probably gotten their password reset in time through account recovery for the hacker to steal them before the 3 days are over, but that's just a guess.
Anyway, with a 1 week powerdown someone could offer these services with that included and there would not be a lot of backlash and questions from investors if they can pull out whenever they want within max 12 days (undelegation+powerdown).
Thoughts?
Graded SP would be cool Premium Normal and Dilluted. All have different amounts of RC/Mana given and different out going conversion times. Upgrade to higher level immediate, but lower down and similar to powerdowns.
Confusing yes! useful maybe? Impossible no!
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If the interface was done right I don't even think it would be that confusing, especially to serious investors. Great idea.
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Agreed 100%, although 1 or 2 days, would be even better, as the 13 weeks is the main reason I have never invested a large amount of money in here, it is simply not flexible enough when you play with outside markets & you want to take advantage of a peak or dip. Even a 24 hour period, would for me, be ideal.
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Yeah, with some penalties in RC and VP in that case so it can't be "double spent" which is the reason to unelegation taking 5 days AFAIK.
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Yes by all means penalties for spent or voted SP, that would be perfectly reasonable to those of us that want to invest, though still play the markets, I hope your message gets read by stinc, I know you are respected on this platform, so here is hoping. :-)
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QuickPowerDown
Could be a solution?
I think that to overcome the need for greater liquidity, some people as your friend may have, it's better to build a rapid disinvestment system based on a penalty consisting of the cost of renting the SP of the 12 installments subsequent to the first.
That is, the system will have to recover (from the market?) 12 SP rentals, each with a duration of 1 to 12 weeks each.
Do you think it makes sense?
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I have some questions by this, the main ones being:
Or do you mean people who mostly do this:
The whole idea of “investing” with easy liquidity as this concept offers, is the same as allowing investors — I mean accredited or institutionalized investors — to exit when a company has a poor quarter or needs to pivot.
You know who has pivoted? Instagram, Uber, AirBnB, Grab is in a “constant pivot” just to name a few of the more known ones.
You know who has constantly ran poor quarters? FB for years, Amazon for more than a decade, Twitter, Medium just to name a few ones.
You could definitely add many more we all know to both lists.
I think the biggest issue is a mix up between “short term profit focus” and “investing” here.
Aside from the bidbots model offering ludicrous APR — which is required because there is no core model nor value behind it and volatility drives is, the fast liquidity model does avoid that anybody would ever try to focus on building long term.
How can you build any business if you don’t know if your backing is pulled over night or not?
You can’t.
If any “investor” can do that, then they’re not investing in anything. They’re merely increasing their profit margin. Then you build an economy where builders eventually need to resort to the model of “getting a mortgage” because it provides the stability required to build. No matter which cost.
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The main idea was to offer daily returns such as @ocdb to investors who don't necessarily want to know what exactly is happening with their Steem they've invested in as long as it provides them the daily ROI + be able to withdraw the funds whenever they want.
Right now it would take 5days+13 weeks to liquidate everything so they'd have to take a chance at when they start the powerdown which during it would only get your curation rewards or ROI by selling it through smartsteem market.
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You will notice that most “investors” will not mind locking in their funds for longer period of time. Yes, of course, as fund manager you need a solid contract then. Many will even pay a fee for managing their funds too.
Yes, times are changing and this is an unregulated stock market mostly.
There definitely is a model achievable. Whether it is a healthy one or a card house, that’s a different debate.
“They’d have to take a chance” is as much a protection as an inconvenience to them.
If you offer a high ROI there’s probably going to be inconveniences in the model as well. Most know that.
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the problem I can see from the 1 week powerdown proposal is that, the steem price will crash really fast if the big whales power down.
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Exactly!
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That's not always a bad thing, our market could use some more volume and bigger buy and sell walls.
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This is actually happening only with steem...
How about the rest of the crypto out there? None has 13 weeks period to have your funds available.
If something is meant to crush it will... at times I think the whole 13 powerdown thing is just an excuse...
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Steem is different from other crypto. I can purchase 100million steem, then power them all up, upvote all my posts and comments, then power all down. I will make nice profit just keep taking advantage of 1 week power down.
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Mate, I know what you mean...but trust me if anyone ever purchases 100 mill steem it won't be about blogging...
Some people keep on doing exactly that as we speak without the need of powering down...
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for the outsiders just trying out steem they could just rent steempower through something like blocktrades. then they are never forced to wait 13 weeks for powerdowns and they can test out what level of sp they need for their personal use.
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Yeah but not owning SP means you get a lot less ROI from it.
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This
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Well, in this comment I have developed the idea of a possible automatic QuickPowerDown system that does what you said.
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I don't know why but the idea of the chance of pulling out all your SP in one go fills me with horror. I can understand from the point of an investor wanting a safety out but maybe I have been conditioned into the way things are for too long to be objective about it!
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The safety for an investor is knowing that the team will still be there tomorrow, next week, next month, and next year. That is why founders, and also employees, have vesting terms.
The safety for a team to build is knowing that the rug on which they ride their rollercoaster isn’t pulled under their feet tomorrow.
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Well my biggest fear on steemit atm is that Steem will rise to like 5$ a piece, and by the time I get to powerdown some of my steem the price will go down again.
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It's indeed a good idea. 13 weeks is honestly PIA.
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Even though big investors don't have a single reason to power up their steem (unless of course they want to blog etc) 13 weeks for a full powerdown is a century in the crypto world...
1 - 2 weeks would be ideal...
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If they want a short-medium tern investment betting on Steem being more than current price then and at the same time earn the same interest as some other users do through delegation to things such as @ocdb which gives like 18% APR.
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I have had no cause to power down but each time I think of how long it takes to get 100% back, I just forget about it. I think they say it is to create stability or so but I've seen steem go from $0.95 to $0.23 & now back up to $0.49. I don't think anyone was able to stabilize it or control the price. So I still don't get why you have to wait that long.
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My first thoughts on this is that longer waiting time often equals more stress and/or anxiety no matter what it is about... There are probably a bunch of pros and cons to something like this, but I would say that users would benefit more by having a shorter powerdown period.
I am not sure about Steem in general though, if it would be a positive or negative thing in the long haul. Short term, I'd say that people would be more likely to invest. Especially as this is crypto, when ups- and downs is a regular thing.
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I know quite a few who would like the shortened time and they have some valid points. Sure, it would cause some dumps on the rises and the like but, could also mean that steem will develop a more stable base over time too as the long term investors keep buying more heavily in while the sellers keep selling low. The sellers will eventually be pushed out of the market perhsps.. I don't know about it though.
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I kind of like the 13week powerdown but if it was swapped to 7days then that would be interesting, gives us much more flexibilty to trade steem and to build up our accounts further.
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Exactly what I said over a year ago, play the markets, win, pump it back in, you can not with a 13 week wait. :-)
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Completely agree!
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13 weeks is a little excessive
7-10 days should be the max. It serves all purposes.
Even tying the time to an amount would be a solution
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I have read most of the comments and replies and i have to say this below.
If an investor wants to have large amounts of Steem, then they should not power up!!!
I know most people here also have liquid Steem hanging around just in case the prices shoot!!!
An investor should only invest heavily in Powering Up if he is going to be here in the long run..!!!
So IMO if an investor will not be here for the long run, do not power up excessive amounts of Steem...!!!!
The 13 vweeks also givesome of us an assurance that we are still expecting more Steem from our Powered up Steem!!!!
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Sure, you can power down in a week, but the other 12/13ths of your Steem power get burned. :D
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lol yes
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Much shorter power down time would be a lot better I think.
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If I’m not mistaken, in the early days of Steemit, the powerdown time was set at two years. 13 weeks is but the blink of an eye. 😏
Sounds a lot like a fractional reserve banking system.
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Managed funds are common. Sand Hill Road is +95% money of other people.
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or just an investment opportunity for people not interested in learning how but want to gamble on crypto :)
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13 weeks is a long time to keep your funds locked up 1 week does make sense but it can't be any shorter
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Personally I enjoy the security of knowing that the powerdown will take 13 weeks. Didn't it used to be like 13 months? We should tell them that :D
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Do you remember all the buzz we experienced when Ned initiated his PowerDown? Imagine if he could withdraw all his stake in a week or two... How could that affect the market?
I think, it’s great that we all had time to calm our emotions and make the right decisions. IMO, 13 weeks are designed to protect the price and make the system more predictable. Investors should be interested in that too.
Yes, 13 weeks may seem too long period, and we can find a balance somewhere in between. 5-6 weeks for example
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I would make it 7 weeks.
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Why not just leave it up to the users? I dont see a reason for a 13 week requirement. Dont really see how in the long run this would effect market prices. Someone looking to power down and sell 100% will do so over a few weeks or 13 weeks dont think it matters.
About the only positive is that it prevents people from making emotional sell decisions. If prices start to to back up (assuming there selling due to low prices) they can stop the power down.
To be completely honest in the past almost 2 years Ive been on the platform it makes almost no difference to me.
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I’d personally like being able to power down in a week. Or at least get an option 13 weeks or 1 week but there would need to be a incentive in locking it up for 13 weeks instead of 1. Or maybe they could just put a small penalty on 1 week power downs instead of the regular 13 weeks.
I am glad someone got this discussion going.
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As Steem and SP get better distribution, this could be done as liquidity will be less of a concern. However, I also think this is a potential place for the Blocktradesbof the world can create a market for these accounts by fronting the liquid Steem while having a MultiSig wallet start the powerdown to pay the fronting or time (for a fee).
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At the same time we don't necessarily want liquidity, or a billionaire would be able to hostile takeover the platform very easily.
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I would recommend it! 🙌🏼
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Maybe not 1 week, but lets shorten it a bit. 10 weeks?
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A shorter power down is actually a pretty valid reason for a fork.
But, I'm sure there will be services in the future that allow you to borrow against your account and power down quicker, perhaps selling the account or some such.
Perhaps there should be different levels of powering up. The standard 13 week power down is like certain types of investment. Like CD's or whatever. Maybe we could have some other type that has a quicker power down but limited benefits.
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Roger, is that you?
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there would be massive dumps with any green price swing:) duing the last bull run exactly 1 week after the peak there were massive dumps when people got their 1/13 of their invesmtents...imagine it would be all of it:) we would be MASSIVELY volatile (something those investors youre speaking about would be too fond of i guess)...
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STEEM blockchain is incredibly complicated and it's difficult to be certain of anything. As someone committed to the success of this platform I appreciate the value that delayed withdraws bring, but as a short to mid term trader I think 13 weeks is excessive and could be doing more harm than good. My trading actions are predetermined by price levels and profitability as opposed to emotional reactions and I would have more incentive to support the price of STEEM during downtrends if I could use the stake to vote or lease and withdraw it quick enough to sell the rebounds. I'm not opposed to more liquidity lowering STEEM price as it will allow for wider distribution. I will start downward cost averaging below 40 cents and selling the rebounds again as I did during the last dip if the price drops. I would prefer something closer to 13 days than 13 weeks.
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Yeah, it should be changed to 1 week. I have brought this up previously as well. The power down cycle being so long ends up being a complete trap and yet another reason people don't want to be apart of this system. About the time you decide to stay in SP the price will dump on your head.
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interesting thing, I also hope to be able to propose this investment to outsiders, I think this is great for the development of steem
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This post has been included in the latest edition of SoS Daily News - a digest of all the latest news on the Steem blockchain.
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Initially the 13week powerdown is also a res flag for me and now I don't think about as much as I did before. I dont even mind about it now since I now have a long term goal for Steem. I guess they have to be accustomed to it and if they personally believe on the potential of steem in the long run they steem is an investment worth for them. IMO
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