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RE: HF Proposal: Vote AGAINST Reducing Power Down Period to 4 Weeks

in #steemdao10 months ago

My gut feeling tell me this change will be approved.

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Hi @chesatochi
That would mean sudden STEEM price crash. imagine all those people powering down to sell - if they would get all that liquid steem and dump it on the market. I would expect huge selling pressure, pushing STEEM to all time lows :/

Maybe this proposal make some sense, but consequences can be painful.

Cheers
Piotr

Back in 2016 we changed the power down time from 2 years to 13 weeks. There were MANY early miners and early high earning authors powering down. It didn't crash the market one bit. In fact as I recall even before the first 13 weeks were up, the market stabilized and started to recover.

The thing is, shortening the power down period does let people power down and sell quickly, but it also removes the overhang of future selling for an extended period. The later can make buying in more attractive.

It would get rid of the weak hands faster!!