Source
Many are calling for Steemit Inc to stop their powering down. I, personally, take the opposite view.
Why would anyone not want Steemit Inc to power down? It only enhances everyone else on the system.
I realize that some DApps that received delegation are affected. This is a drawback and a negative to that. However, these projects need to figure out a way to create value on their own. As we discussed on here, relying on delegation to generate STEEM as a business model is not very effective. It is time for some creativity, which we are already seeing.
Steem Power is what determines influence on the blockchain. Most of the benefits of are offered here are tied to the amount of Steem Power an account has.
That said, it also is a reflection of the totality of what is powered up. As a larger account powers down, this increases the influence of every other account on the blockchain.
When Steemit Inc first started the powering down, it was questioned whether they were abandoning the blockchain. What was their commitment level? I think it is safe to conclude that Steemit Inc is fully dedicated to the Steem blockchain. The powering down is not an indication about how they feel. The move is for other reasons.
By removing their enormous stake, they are removed from the inflation pool. Only STEEM that is powered up receives the inflation payout. This will only help all the other accounts who do keep their STEEM as SP.
I realize that Steemit Inc will retain most of their STEEM. They have been selling some regularly to pay the bills and this will continue. However, most of what they are powering down will remain in their control.
Some will say this is just moving it from the right hand to the left. That is not the case. On this blockchain, influence is SP, not STEEM. What they are holding in wallets elsewhere does not impact the blockchain. Sure, they can power it up at any time but that is true for anyone. We do not know who is holding STEEM in exchanges and elsewhere. There is a lot of STEEM out there that is not powered up.
As I wrote when @ned was doing some things that were of great concern to the community: optics mean a lot. We have these charts put out daily by @arcange. It is there for everyone to read.
https://busy.org/@arcange/steem-statistics-20190126-cn
A large part of the Whale category is Steemit Inc. I know they will still be in possession of their STEEM. However, in terms of influence on the blockchain, it will even things out a great deal. A lot of people in the industry talked about the amount of STEEM that a few people were holding. This gave Steem a negative view by many in the industry. This will help a bit.
As the powering down is moved around, it will just blend in with the other 80 million STEEM that is held outside of SP. Also, while we will not be aware of it, the sale of STEEM by this company is going to have to continue for the foreseeable future.
Payout from the reward pool and Witness votes are all based upon Steem Power. While Steemit Inc was not active in these areas, they could have been. This removed the potential of that. Things could reverse if they power up, but for now, the power structure for the stakeholders is changing.
And, in my opinion, this is a good thing.
If you found this article informative, please give an upvote and resteem.
