Should a small-percentage immediate-power-down option be added to HIVE to increase baseline liquidity, to resist against pump-and-dump manipulations?
Although I am relatively new to Hive, I have affirmed the wisdom of the HIVE staking protocol, wherein holders must choose whether they want liquidity or influence with their HIVE tokens.
However, as I’ve watched the price of HIVE dramatically increase the past several days, a few relevant thoughts have occurred to me.
- Whereas curation rewards (including rewards from auto-voting) are tied to staked tokens, there is a strong incentive for holders to keep pretty much all their HIVE holdings staked.
- Whereas there is such a strong incentive for holders to keep their HIVE staked, the ratio of ‘liquid’ HIVE to ‘staked’ HIVE is likely to remain relatively small.
- (I have been searching for historical data showing the above ratio, but cannot find it. If anyone can point me to those data, please put a link in the replies.)
- If the ratio of ‘liquid’ HIVE to ‘staked’ HIVE remains relatively small, there is significant exposure to external ‘pump and dump’ manipulations.
- This exposure could be dramatically diminished by simply allowing every account the ability to immediately power-down a certain relatively small percentage (e.g. 5%) of their staked HIVE.
- There could be a limit on the frequency with which such immediate power-downs would be allowed (e.g. 30 days between successive immediate-power-downs).
The above change to the ‘power down’ requirements would allow wide-spread immediate temporary profit-taking by legitimate HIVE holders in the event an external ‘investor’ tries to temporarily pump up the price of HIVE.
I realize my above suggestion might be overly naïve. As such, I welcome comments and criticisms from those who have a longer history with Hive and
steem and who might have additional insights to add.