Steemit is Powering Down 34 Million SP, Transferring to Bittrex, and Pulling Delegations - Why It's Good News!

in #steem5 years ago (edited)

Moves like this can and do indeed trigger some FUD. I understand why some people are worried. But I say, don't worry that much about it. In case you haven't seen it, check out the @steemit.com/transfers page:

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The FUD

Imagine the largest share holder in a big corporation started to sell their shares. Even the perception that they started to sell their shared would do it. People get worried that their investment in the company through owning shares will go down, because there will be downward pressure from so many shares being sold.

The fear, uncertainty and doubt hits them in the psyche. They want to get out before their shares are "worthless" (or worth less, anyways). A selling frenzy begins. The price of the stock tanks as selling shares cascades onto markets.

This could happen with STEEM, sure. There are two things that happen in the case of the corporate stock, or in the case of STEEM stock/stake.

  1. People who only care about the money are getting out to recuperate their money, even at a loss, rather than lose more in their minds. This leaves more of the stock/stake out there for others to buy, and most likely really cheap.

  2. People who care about the company and see the value, don't get in on the FUD, and keep there stocks, and just buy more to get more influence. People who want to influence STEEM more, will be able to pick up influencing stake at a super cheap price and increase the distribution of tokens in the platform.

Decentralizing Distribution

This is what I see as the benefit to all of this. Steemit Inc. needs to let go of their ownership of millions of tokens by putting them on the market in order for others to buy up. If it stays in the @steemit account, it can't be sold for others to buy. At least now, there is that possibility.

Just because the tokens of STEEM move to an exchange, like Bittrex for example, doesn't mean they will be put up for sale. But it's make it possible. And selling it at a lower-than-current-market-value, would indeed put downward pressure on the price of STEEM. So what?

As I mentioned recently, we need to 1) get over the attachment and dependence on investors and the rich, and 2) stop looking at selling STEEM as being "bad" for STEEM and Steem.

We don't need the rich to keep their STEEM. Let them sell it off. Welcome it. Don't look at it as bad. Stop looking to the investors and large stakeholders as being necessary. Then maybe we won't be so focused on doing anything just for money to prevent people from selling their STEEM. If they can sell it, that means someone else owns it. If the rich holders sell it, that means it's going into someone else's pocket/wallet.

Would you prefer 40 rich whales on the platform with all the stake more centralized, or 400 or 4,000 or 40,000 people with that stake more decentralized instead?

More people being able to get STEEM cheaper is good to me, not bad. THe poorer of us can get more influence on the platform, rather than the few with the most SP having greater influence. It helps with decentralizing distribution of STEEM, and potentially Steem Power. Looking at the value of STEEM alone seems to indicate caring about the price of STEEM because one is too focused on making money. Maybe I'm wrong ;)

Decentralizing Influence/Power on the Platform with Removing Delegations

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See steemd.com/@misterdelegation

The removal of delegations might suck for those who got it, sure. But everyone else benefits with their own stake to influence the platform. Think about it.

When millions and millions of stake was being delegated, a large portion of the reward pool was being controlled by those delegations. A few accounts held sway over how the rewards were to be allocated. This was a centralization of influence and power in the hands of few.

Only those who would receive votes from those projects would get the benefit of the delegation to those projects. Everyone one else's influence over reward allocation on the platform goes down when powerful accounts with lots of SP are voting.

With the millions of SP being removed, everyone else's influence on the platform goes up. This means there is more decentralization of influence, and more power to everyone else in the community. Is that really bad, or actually a good and better thing to have happen for Steem? Think about it ;)

Take Advantage

Of course, this is only a benefit if more people who have less STEEM buy more STEEM. If the rich just buy up more of the STEEM at lower prices, then we have less distribution and decentralization of power and influence on STEEM, where they gain even more influence, power and control over the platform. Don't let the rich get it all :P

Historically, this is what has happened in the stock market. But that's a closed system, where the economy fails and people suffer, leaving only the rich to buy up everything on the cheap. Our situation is different, because there are two systems: 1) traditional economy and 2) crypto economy. The traditional economy hasn't tanked yet, so people aren't suffering economically, and are still able to buy into the crypto economy.


Source

It's a new dawn. Steemit getting rid of their STEEM is an opportunity for the rest of us as I see it. Maybe I'm wrong and this is the end :P LOL!


Thank you for your time and attention. Peace.


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A great post. Thank you for putting this up. I had a similar post this morning although not spelled out to the degree you did. Fabulous job.

People complain that the whales hold too much SP and then they freak out when a whale moves the SP. As you said, there is nothing that says Steemit will sell the Steem, only they are powering down. There could be many reasons for this which we will have to see if they elaborate upon.

In the long run, we need SP power in the hands of more people. Each week I do a post, this weeks will be up later today, about how the shift is taking place in the SP accounts 5,000 and below. Each week, I am seeing more accounts moving up the scale meaning they are earning SP. It is slow and the numbers are not overwhelming yet they are drifting in the right direction.

The bottom line is more accounts are holding SP and the ones that have it are gaining more. It is a twofold move.

You're welcome :) Yup, it's good that more are getting SP, but slow. Concentration if power will take time to dissolve... meanwhile the rich get richer too...

Yes, we are on the same page and many of my associates have been waiting for this opportunity like @doomsdaychassis.

Where some people see FUD, others see an opportunity. That's what I tweeted and remain optimistic moving forward.

In case you were interested, there is also a GitHub link to HF21 codenamed "Freedom" included in one of my tweets where I make an analogy of the situation.

I'm working on getting some funds available so I can seize this opportunity for people like us to usher in a new era on Steem. I'm going to keep doing my thing and continue developing for the people.

When we make this place greater, the dumpers are going to FOMO so hard later. 😊

Tweet on my thoughts of HF21 with Github link Some see FUD, some see opportunity tweet

Thanks for the link, it inspired another post ;) I;m not sure what I laid out here is valid anymore hehe. We can always hope they sell it all though :P

Fingers crossed.

TMW you realize you voted a comment too early. Ooops! On that note, think we really need a front end to queue up votes.

I think @holger80's rewarding does that via bot but would be nice to have the functionality cooked into the front end.

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I am a vulture waiting to pick a the bones. I keep earning and am waiting for penny steem. It does not mater what we do. We are at the mercy of following Bitcoin. So keep getting what yo you can nd wait for the next bounce.

Can't wait till we all stake up. Gonna be great!

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It will either be really good or reaaaaaly bad. lol

I'm happy that you made this article, and I hope all the people joining the Steem blockchain get to read it!

In my view 27 cents for 1 steem is a great price, so if it goes to 12cents even, well thats just even better and I will become a dolphin :P

Unless it wasnt true but I remember around 8 months back, China rated The Steem Blockchain in the top 5?! The Dan, I believe is a very clever guy, and in his own words he said (something along the lines of) - " Ive created steem, eos and bitshares, not to make more money - I have plenty of money, but I wanted to create things that I can use myself to build other project's on in the future.."

People really forget that blockchain and crypto still need a few years before the world absolutely needs them in everyday life..

Yeah, I still need to see how blockchain is going to be so useful for all the things being claimed or tried. Data integrity. Check. trustless data validation. Check. Paid to game. Check. Otherwise... why not just have a centralized database for music, video, pictures, etc. Or maybe a few nodes... but not 100+ to store all data...

It will only work out good for this tech if the whole world wakes up to the amount of corruption in pritty much all aspects of society, the food chain, the pharma companys,medical data and personal data collection used to manipulate peoples buying habits and behaviors, banks, companys such as the police, dam - even the UK is a registered company!

They are just a few that come to mind without much thought :)

But as we all well know, the conditioning of the human mind is so unbelievably deep that it will take, well actually I really do not know what it will take before people say "fuck off!" Its a great start with the yellow jackets in France who are planning to take them euros out of the banks which will in turn crush the french banking system, and then they will look for alternatives, and I doubt we will go back to being farmers and blacksmiths trading goods because we are too accustomed to conveniences :)

They WILL find Crypto!

This would be fine if the Steem platform were effective for earning Steem. Right now the economy is also messed up, and it's a bear market in general. Bad timing, bad communication, I like to compare it to if Satoshi Nakamoto were to return right now to BTC and decide to move all his BTC to Bittrex. How do you think the BTC community would react? Probably far worse.

Thank the bidbots for fucking shit up good, putting an eyesore on the platform and making it a greater joke and scam that bypasses evaluating content to reward it.

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This seems to be a crucial topic of discussion, thanks for the info. I've read all the comments so far and the jury is divided regarding the future and the value of Steem and the Steemit platform. As a newcomer of less than 4 months, I'm here as a writer happy to earn some steem for my posts. Steemit inspires me to be original, creative and well-researched. I'm not too interested in the leadership or the economy as I think it will sort itself out, as the market does generally. There are enough members here and enough momentum to keep Steemit going.

I'm not too familiar with all the bot stuff and delegation business. It seems a bit inbred to me - paying for upvotes from bots so that you can get paid. Obviously I haven't been around long enough to know what's actually going on in this new economy but the rise of the bots here is a bit fake to me. Do people even read the posts? Who are human and who is a bot? Which accounts are clones and which are people? Steemit needs to remember the human element and the original idea of creative content curated by humans who vote as humans for good or bad posts.

Just my novice impression.

I'm not too interested in the leadership or the economy as I think it will sort itself out

We've been waiting almost 3 years, and it has yet to. It doesn't sort itself out. People act to make things change. Or they don't.

The bidbots are a plague to Steem being an authentic place. It's a travesty that many support in their deluded goals. This bastardized the human element and real authentic evaluation of content in a social context. I'm glad you picked up on the fakeness of the platform that devalues it potential for success.

Yes, we are on the same page and many of my associates have been waiting for this opportunity like @doomsdaychassis.

Where some people see FUD, others see an opportunity. That's what I tweeted and remain optimistic moving forward.

In case you were interested, there is also a GitHub link to HF21 codenamed "Freedom" included in one of my tweets where I make an analogy of the situation.

I'm working on getting some funds available so I can seize this opportunity for people like us to usher in a new era on Steem. I'm going to keep doing my think. Keep developing for the people.

When we make this place greater, the dumpers are going to FOMO so hard. 😊

Tweet on my thoughts of HF21 with Github link Some see FUD, some see opportunity tweet

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It's either the perfect time to buy, or the perfect time to skedaddle.

Either way, expect drama you've never seen before.

LOL, maybe it will all blow up in our faces... :/

I had the same sentiment in wolf’s post. It’s awesome that they are moving their stake off the platform!
The delegations is also a good opportunity; the users who were receiving the delegation and votes from said delegation were sure as hell not regular folks like us! All of that power centralized in one spot is just bad for the future.
I would love to grab up some Steem if the price slides under .20¢

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let's hope they sell :P but probably wont happen.

0.08 cent Steem her we come! can’t wait to get a big boy stake soon 😬

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