PROPOSAL: Resolving the stalemate with TRON/Steemit Inc. - A concrete way of moving forward
The community can buy the 70M stake from Steemit Inc. over a period of a few years. The Steem Proposal System (SPS) can be used to pay for buying the stake. The purchased stake can then be gradually sent to the SPS to fund it, over a period of multiple years.
How this would work
The community collectively buys the 70 million Steemit Inc. stake. The stake then becomes community property and can be used for development of the Steem ecosystem for years to come. The price for the 70M stake will have to be negotiated between the community and TRON/Steemit Inc.
Note: Keep in mind that TRON bought the 70 million STEEM over the counter (OTC), meaning at a price much less than the market price. At a price of $0.20, the 70M STEEM would be worth 14M USD. We don't know how much less than that TRON paid.
Possible scenario 1:
Community pays about 2 million USD for the 70M STEEM over a period of 3 years.
This means the SPS pays 2000 liquid SBD per day to TRON/Steemit Inc. (this means 730 000 SBD per year, or about 2 million SBD paid over 3 years).
Possible scenario 2:
Community pays about 3 million USD for the 70M STEEM over a period of 3 years.
This means the SPS pays 3000 liquid SPD per day (over 1 million SBD per year).
Again, the exact deal parameters will be a matter of negotiation.
Benefits for the community
- The 10% of the reward pool that currently goes to the SPS can be directed back to content creators and curators. All will enjoy higher payouts as those 10% will go back into author/curator rewards.
- The SPS gets well funded for years to come. The funding can be used to fund projects that benefit the community.
- TRON/Steemit Inc. gets liquid SBD. As we know, the SBD price fluctuates and can go many times over 1 USD, so there is incentive for TRON/Steemit Inc. to help increase the price of STEEM so as to make the liquid SBD they get paid on a daily basis be worth more and more.
Benefits for TRON/Steemit Inc.
- They get a way out of the current mess they are in by selling their stake to the community at a negotiated price.
- They can get a super good ROI from their investment if they help increase the STEEM price. For reference, see that when the STEEM price increases, the SBD price goes well above 1 USD. So the liquid SBD they get every day will be worth more and more if the STEEM price increases.
- Perhaps there will be other avenues for ROI for them, e.g. by continuing the development of Steemit.com, developing interoperability between Steem and TRON, and other such projects.
- Restoration of PR.
Payment in liquid SBD seems most desirable to me, but payment in liquid STEEM may also be possible.
Technicalities
The agreement can be coded on the blockchain level. A Steem blockchain developer interested in the project can give a quote and can then be hired to do the development work and testing. It does not seem like a lot of work considering that the SPS already does these operations. Actually, there is a chance the blockchain as is will be able to handle the execution of the agreement. In any case, if some development work or testing is needed, perhaps TRON/Steemit Inc. will be willing to pay for it as a show of good faith.
Please comment your thoughts, questions, suggestions, and any pros and cons you see in moving forward in this way.
Too old to give this a vote and wish I'd have seen this earlier. We think very similar!
3 million is way too low. Pay what it's worth today over a longer period of time if needed but there's no reason for anyone to accept lower than market value, except for an exit scammer like @Ned.
Sure, those were example scenarios. The price will have to be agreed to by both parties. I think the community may begin the negotiation by making a concrete offer. So TRON can say if the offer suits them or what other price they find acceptable.
This idea sounds interesting but has one problem, it takes the stake and gives it back to JS/Tron in SBD or Steem again in the course of 3 years. So basically after 3 years JS/Tron is again one of the largest stakeholders of SBD and/or Steem. Besides why would he agree to such a plan to freeze his stake up for 3 years from his perspective?
Yes, after 3 years (or however much - the period is negotiable) he may still be one of the largest stakeholders, but this would require that he holds all the daily received payments over that time rather than sell. I think this is quite different from buying in one go OTC. But, perhaps more importantly, it gives the community more time to improve the governance mechanism so as to better ensure decentralization.
I think from his perspective, even if he has 70M liquid STEEM right now, he can't sell it all without crushing the price. It will have to be a gradual sell over a long period of time. How much STEEM can you sell per year? 20M? 30M? I guess Steemit Inc. were able to sell 800k a month which is like 10M a year and it probably influenced the price negatively.
What do you think?
Don't see any reason why JS would agree to such a freeze up though ;)
Well, maybe he wouldn't mind that much if it's paid over a shorter period of time, maybe 1 year or something like that.
In 3 years, a lot more steem will be circulating so Steemit inc's circulating supply will be a smaller portion of the available supply.
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We just need to convert him to a hodler until the price is much higher, then we won't care if he dumps some.
How do we do that?
Gonna have to find him a supportive audience.
He would have to wanna do it.
I'm sure he'd rather dump at a dollar than a dime.
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