Power Ups and Power Downs. More than Numbers?


I've seen lately a few posts celebrating a streak of days with more power ups than power downs. The paused programmatic STEEM sale of Steemit, Inc. most likely helped reversing the trend.

But even so, there are different kinds of power ups and power downs.

For example, you can power up your liquid STEEM rewards. In almost the same category, you can exchange or convert SBD to STEEM and then power the latter up.

In a second tier category, you can sell something for STEEM (product, service, digital asset, SE tokens, etc.), then power up. This type of operations also give some boost to the Steem economy.

A "premium" power up in my book is when you buy STEEM off the market and power it up. In this case you bring more money into the Steem ecosystem.

For the power downs, the situation is even more complex.

The "fake" power down. I am doing that on all my accounts but one. To someone who doesn't know what to look for, it looks like a normal power down.
image.png
You may think: Aha, why should I trust this guy? He is powering down!

But it's easy to check really. In the image above (screenshot from SteemWorld, obviously - Balances tab) you see a button "Outgoing Routes...". If you click it for my account @gadrian you see this:
image.png

Which means that all the withdrawals from the power down go to my account @gadrian-sp. Moreover, they all go directly as vested SP, not liquid (you can see the little check mark for Receive Vests).

Anyone can do that obviously. And that's NOT a real power down, that's moving your stake to another account of yours. Sure, the same process is used for security reasons.

But that's why I call it a "fake" power down. Sure it goes to the other account as a power up too, so the power up/down stats should be ok. But what if the owner doesn't tick the "receive vesting" checkbox and powers up manually when he or she remembers? There might be a delay between the power down and power up, but still ok.

Power down to pay for Steem-related expenses. Well, most witnesses do that. Steemit, Inc. does that (or did until last month and probably will do it again).

Power down to buy something in the Steem economy. If someone powers down to buy a strong collection of Steem Monsters cards he or she wants, is it right or wrong? SM is still in the Steem ecosystem. And those cards are tradable. And they produce more gains. Just an example. I wouldn't power down for that, but I don't even have enough SP.

Power down to have trading liquidity. Some may think this is bad. I don't. There needs to be a balance between available/tradable STEEM and blocked (powered up) STEEM.

Power down to exit. Whether full or partial exit, you can't tie somebody up if he or she wants to leave.

Power down to extract pennies. I don't believe it has an important impact on Steem unless the user spams with low quality content or plagiarizes. It has however a big adverse effect on the accounts which do that, because they never grow and will never earn more than pennies.


In the power up and power down stats we add these numbers up and see which is greater than the other. But there can be a real story behind every power up / power down. How relevant it is to add them as if they are the same?


Comments 11


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21.09.2019 13:01
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What the true essence of your thought?

Posted using Partiko Android

21.09.2019 13:24
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That we can be deceived by the power down and power up stats, if we don't understand the reasons which drive people to power up and power down. Of course, knowing that is not easy.

21.09.2019 13:35
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Nice summary @gadrian :)

21.09.2019 17:02
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21.09.2019 13:41
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All good, but what about merchants?

We are onboarding merchants, hotels, bars, restaurants etc @reggaesteem....

What do you call a power down to pay staff and suppliers? 🤔

Does that also get a negative connotation?

For merchants and actual mass adoption, powering down and selling every now and then to pay staff and suppliers is not an option.

It takes a few weeks to onboard a business or company to accept crypto or Steem— it will take years for that to trickle down to suppliers.

It takes government intervention for companies to pay staff in crypto. They have to declare it legal tender first.

There’s a lot more to this, obviously but unless someone is powering down with intention of leaving Steem entirely, I see no harm. People have families to feed, businesses have staff to pay... can’t expect mass adoption from hodlers and that’s a fact.

I’ve never powered down, but definitely will one day if life/business requires it.

Cheers !BEER

21.09.2019 14:33
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Yup, I agree, that's a great point! Steemit, Inc. powers down to pay for salaries, so I don't see why that shouldn't be acceptable for merchants' case.

I also don't see most of these types of power downs with a negative connotation.

Merchants which needs a lot of liquidity, should always keep some available, even if they powers up. They can also start using a service such as likwid if 100% liquidity is needed and if that will slow down or make unnecessary altogether a power down.

21.09.2019 15:01
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View or trade BEER at steem-engine.

Hey @gadrian, here is a bit BEER for you. Enjoy it!

21.09.2019 14:33
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21.09.2019 23:40
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This post has been included in the latest edition of The Steem News - a compilation of the key news stories on the Steem blockchain.

22.09.2019 10:37
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22.09.2019 16:30
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