Hive's 13 Week Cooldown: A Blessing And A Curse
Imagine you are watching Hive skyrocket in the markets. It's up 10%... Then 20% then 30% and upwards. You log onto your Keychain and take a look at the value of your stake and get very excited. Then with a sudden shock you remember that all of your Hive is actually Hive Power... You can't move that value and trade it in a market. Well, you can... It will just take you 13 weeks, by which time you would have seen Hive pump 15 times without being able to take the profits you want.
@edicted wrote about this a few months ago in an article that can be found here but I am not sure that anything has changed or improved about the situation since. I have heard speculation about lowering the amount of time needed to power down, but once again I don't think there has been much traction.
There are absolutely positives to not having immediate power downs that go beyond the technicalities of our voting systems.
For example, I am personally a very sporadic person and do not always think through all of my decisions. With a long-term power down, you have a lot of time to think and evaluate your decisions before making them; for me, this has resulted in being able to maintain my bag and even continue to stack into it without ever spending or panic selling my profits.
Additionally, having such a long power down process has made me more inclined to delegate and use my hive power to create passive income. Though bringing in a few hive a day is not life changing money at this point, it does help to continuously increase the size of my influence here on the blockchain and provide more incentive to remain active.
Now, the negative aspects come from the fact that we could be speculatively trading Hive in order to earn more Hive, but along with this comes the risk that our trades are poorly timed or provided suboptimal returns.
I think that in order to find the most optimal outcome for everyone, we should be finding a middle-ground. Maybe instant powerdowns are too dangerous for the more sporadic of us, but having to wait too long to move funds that have been earned is also frustrating. It is my belief we should be doing around a 4 week power down where we are able to move 1/4 of our funds each week. In this scenario, there is still the aspect of waiting and further analyzing our decisions, but there is also the ability to take advantage of market swings that we are noticing and be able to increase the amount of liquid assets we have access to in an emergency situation.
What are your opinions on this issue? I know it has been discussed in the past, but I wanted to bring it back up as it is something that has been on my mind recently.
Let me know in the comments!
@mariosfame gif once again, I love it:
@sgt-dan with this sick pic:
@gr33nm4ster made this awesome gif I needed to share, we thank him as well!:
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