Motivation for Powering up more Hive: Musings on Instant Powerdown

Yesterday was a great one for all Hive holders and supporters as HIVE made a new ATH over $3. That wasn't really expected at this time of the year, but such happens to show the unpredictability of crypto and how sudden it can turn the fortunes of whoever at any time. While the pump in Hive price to over $3 benefited liquid HIVE holders and liquid Hive-engine token holders, the users who powered their tokens powered up only watched the entire drama to their self pity.

It raised many questions as to what the real motivation to stake HIVE would really be. We know that Hive staking attracts around 3% APY while staking and curating would make as much as 9.3% APY. The ride in HIVE from below $1 to over $3 in less than 3 days made several HIVE hodlers rich. If not for my hive-engine token holdings which some were in liquid form. I believe that users who power up their HIVE tokens deserve more motivation to do so in addition to having a huge stake in governance since they give value to content creators, thus, making the social component of the chain possible.

I know many top curators started powering down their Hive tokens, but having them in liquid form in the next 7 days may never meet this groovy price.

I know that a longterm mindset is better with crypto investment and holdings however, every investor needs the periodic assurances that the investment is worth keeping especially for a very volatile market like cryptocurrency. As we see Hive scale to the nw ATH of $2.36, its only HODLers that can take their profit and not those who staked to curate. Staking and curating with Hive makes the token quite illiquid and that for a very long time, and in Hive's case 13 weeks as the powerdown code stipulates.

A case for a Fee for Instant Powerdown

It may quite sound ridiculous, but a fee as high as 20% or even 25% for an instant powerdown of an amount of Hive staked could be a great motivation and incentive to powerup Hive, knowing well that there is an option that allows an investor to take profits during unexpected an temporary bull runs like we have over the last few days. Give the investor the option of losing 20 to 25% of his holdings to a burn by instantly powering down a certain amount of Hive. This would make the 13 week powerdown an alternative with weight for anyone who is not willing to loose as much as 20% of his holdings.

Set a volume cap for instant powerdown

To further strengthen and give motivation to power up tokens, a cap for instant powerdown should be set, say 1 million HIve. That cap ccould be decent enough and investor chooses to lose 200k to 250k tokens to a burn for instantly powering down.

Set limits to number of instant powerdowns within a time span

Allowing for more variables in the powering down opf Hive wpould make it more dynamic and would allow some investors choose the long term HODLing of their tokens in stake so they can give value to the system through curation while also having the window to take profits when they will. We can say for example, that, only 2 instant powerdowns can be made within a 90 -day period in that a huge stake holder doesn't crumble the market in one day.

Give part of Curation rewards in liquid

Presently, all curation rewards are received in terms of Hive Power. I think if a proportion of curation earnings are given in either liquid HIVE or HBD, it could help motivate more staking of Hive as the top curators could also have access to a few liquid tokens to take profits during pumps like we had.

The bull won't last forever

The bear and bull seasons in crypto succeed each other and that cycle would always be. The cycle allows for a buy in by fresh investor and gives health to the system.

The above are my suggestions concerning staking and powering down of Hive in a way that could be a win-win for all investors. The post attempted to answe this question:

Is Staking & curation on HIVE main layer really profitable? If Yes, How do we take profits during pumps?

What is Hive?

Hive is an innovative and forward-looking decentralized blockchain and ecosystem, designed to scale with widespread adoption of the currency and platforms in mind. By combining the lightning-fast processing times and fee-less transactions, Hive is positioned to become one of the leading Web3 blockchains used by people around the world. source

What is Hive-Engine?

Hive-Engine is a smart contract platform on top of the Hive blockchain. It allows communities and businesses to build their own tokens, which are then built on top of the technology provided by Hive. This is the ultimate layer 2 solution. The token created on Hive-Engine is then immediately tradable with Hive on their exchange.

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