Power Down Time

With recent talks of power down time and how we should go about it, I'd like to take this chance to once again bring back the idea of a instant unstake (power down) with an exit tax. This time, instead of burning the tokens, we redirect them towards Hive Power hodlers.

If you want to dramatically increase ROI for HP holders without raising inflation and also give users a way to instantly get out, add "taxes" that go back to Hiver Power holders. 13 weeks or 4 weeks is fine with me if you want your "free" unstake.

Reward strong hands at the expense of weak hands.

The tax I propose is as follows:

  • 5% powerup tax.
  • 10% instant unstake tax.
  • 10% tax on all rewards claimed (including tax rewards)

Defi has made taxes standard, so taxes will not be a barrier to users as they are used to such taxes dealing with Defi. This means this solution is not only battle tested but very popular.

The funds taken from the taxes will go to a pool, where 2% of that entire pool will be dripped daily (or every 2-3 days to meet the dust threshold for small accounts) to Hive Power holders. This ensures long term hodlers are rewarded greater than short term speculators and weak hands.

This would increase passive ROI for HP holders without raising inflation. Thus making it more desirable to power up but also gives investors a way out if the coin pumps 100% in a day. With each big pump, we would see a lot of instant power downs, adding a lot of extra ROI for the ones that stayed powering up.

Add a tax to "harvest" your author/curation/passive staking rewards. Example: When you claim rewards, 10% is sent to the pool. This is a way to punish authors that constantly power down their rewards and rewards those that stay powered up.

Add this as a 1-time opt-in option. Have a whitelisted address being used to withdraw to. Changing the address results in a time reset of a week or so. There are other ways to stop people from getting hacked and funds drained. To protect the user but also help the investors.

And unlike most of defi, Hive has a lot of neat reasons to power up aside from passive rewards with features such as PoB, governance voting on witnesses and proposals, RCs (with ability to delegate soon), so having a high APY for staking on top of these use cases is a nice setup.

There are clever little ways to increase ROI in a elegant way where the user does not feel much, yet the long-term investor gains a lot, all without inflation. Since a lot of authors just power down their rewards, this will greatly benefit long-term HP holders.

I encourage everyone to give their thoughts on this hackmd of the PROs and CONs to each of the various suggestions for power downs.


EDIT: Important note: If you opt for HP rewards, zero tax, if you opt for a 13week power-down, zero tax. So authors who power up all their rewards can still power down 100% of those rewards without any tax.

Proceeds of this post go to @pettycash - a grass roots marketing effort by Hivers.

3 columns
2 columns
1 column