Some are powering down, but that is not necessarily a bad thing!

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Fear of big power downs

I have noticed some fear around me here on the Hive and Leo community about witnesses and big accounts (orcas and whales) that are powering down, or started a bigger power down than before. And hé, when Hive triples its value in a matter of weeks, can you blame them. And in the short term I can understand the fear among the smaller accounts, they are afraid this extra Hive will make the price of Hive tank again. But we have to look at the bigger picture. First of all, everyone has the right to power down, it is his Hive, he does with it as he pleases. That is the beauty of this ecosystem and the decentralisation. But what could be the consequences of more power downs...

Very little for the price

If we look at the amount of Hive that has been traded the last few weeks, a few million more Hive on the market will only be a drop in the ocean. Yesterday more than 1 billion USD worth of Hive was traded on the entire market, just to give a small example.

Eubalaena_glacialis_with_calf.jpg
Some whales are going to become smaller

Good for the decentralisation

Bigger accounts powering down (some) of their Hive is actually a good thing for the decentralisation of the network. Right now 69 % of the Hive is in the hands of 300 accounts, that should and will change in the future. So, I actually encourage those big accounts to power down some more. It can only be good for the entire community and make the richer a little less rich, and give the poorer a bigger vote.

Good for the reward pool

The lesser Hive is powered up the more (fresh) Hive is available for the ones that keep their Hive powered up. The reward pool is going to be shared over smaller pie, so the smaller accounts will receive a bigger piece of the pie. That is also the effect of more decentralisation. Ok, the biggest accounts will still receive the biggest share, but even a little bit more for the dolphins and the minnows, is a good thing.

So, the future is in my opinion even brighter with larger power downs, it sounds contradictory, but it isn't!

Sincerely,

Pele23

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9 comments
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I like your view on this one, quite objective. As you said it, all of this is perfectly normal in a decentralized platform.

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Also if the large accounts power down that's great for distribution and decentralization.

We should focus on demand and let those who have earned taking some profits go ahead and take them.

Hive isn't a charity or a life long cult! :)

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As I said, it is a good thing that Hive gets redistributed this way

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Completely agree, bring it on!

Plus, some of these accounts might be trading out some Hive to buy back lower in the future in order to accumulate more!

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I agree this should be seen as a positive and not a negative. Still in tow minds what to do myself as nothing is clear and only expect price to go up from here somehow. Many are talking about the 1st quarter of 2022 when big price movements will happen.

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I have doubted myself too, but decided to stick with it completely, and keep on stacking. I feel this is not the endpoint yet, it can’t be, this feels like the beginning to me. I could be wrong, and that would be sad, but we’ll see

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Bigger accounts powering down (some) of their Hive is actually a good thing for the decentralisation of the network. Right now 69 % of the Hive is in the hands of 300 accounts,

This is a big point for the future. While we wil always have whale accounts compared to the majority. It's great to see it spreading further and further out over time.

That is what the network needs for true decentralization.

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