Mutual leverage between Steem and exchanges; we can be destroyed, or we can use it
The past few days have been unfortunate and terrible decisions have been taken by many people, both for us, the Steem community, and for themselves. The exchanges Huobi, Poloniex and Binance allowed themselves to be bribed into manipulating Steem DPoS governance.
However, now the exchanges have their Steem stuck on the Steem blockchain's 13-week power-down delay. They don't want that, so they are likely to protect anyone who will solve this problem for them, be it Justin or the Steem community-voted witnesses.
Steem trading pairs
As of now, it is inconvenient for the exchanges to increase the number of pairs that Steem can be traded against because, the more it's traded, the more they will have to allow for withdrawal, and they don't have many funds now. If we want more trading pairs, they need more funds, and they have it all powered up.
The funds can be leveraged for our benefit
Right now, Justin is the only one willing to work with them. Most of the Steem community is alienated against the exchanges because they unethically used custodial funds against our governance.
If we offer a temporarily fast power down in exchange for more trading pairs and global exchange benefits for the Steem currency, we're likely to get heard.
The bad side
Bittrex refused to work with Justin out of ethics and better long-term planning. If we provide benefits for trust-infringing exchanges, we will be indirectly penalising Bittrex and making them reconsider their previous position. We will be encouraging infringers, telling them "we will offer business opportunities once you're done stabbing us".
The good side
The business opportunities are good.
These exchanges acted unethically and the world saw them do that.
"We do not negotiate with terrorists" comes to mind.
If we negotiate with them, we show that we are weak. They decided to stake their customers' steem for 13 weeks, let the reap the reprocussions.
The crypto world saw their actions, savvy crypto investors will not be using them any longer.
Let's forge more alliances with the "honest" exchanges who did not cave into the thought of being on the billionaire side.
Posted via Steemleo
Indeed, we should be doing that, in my opinion. For a contrasting opinion, read my other comments in the thread. But you're right, we should definitely look for the exchanges that did good, particularly Bittrex, and design deals to get them to benefit us. Now with all this scandal, we're sure to catch the public eye more easily.
Remember the times when STEEM on Poloniex was "in maintenance" for months likely because of tech incompetence and nobody could do anything about it?
If people try to withdraw more than they have liquid, they probably just put STEEM into "maintenance" and sit it out for 13 weeks. Although illegal and evil, they probably will get away with that.
It depends on what you mean by "get away with it."
I was taking a monster 7-month-pregnant and tired nap the other day and my kids "got away" with eating pizza and drinking soda in their room and making a mess. They didn't get in trouble, but, guess when the next time I'm gonna buy pizza is.... and guess who now gets chores and things to do while mama does not have time to be "wathcing" them.
So, they ate the pizza and didn't get "in trouble" but, the long term consequences are there.
Probably a bad analogy since they will probably eat pizza in their room again... but still... a slight example of how "getting away with stuff" makes those around you weary, and that is a consequence in itself.
Posted via Steemleo
Like I wrote in the other comment: in 2020 nobody really into crypto should use centralized exchanges anymore
Riiiiiiight. Noobs. AND kids shouldn't eat pizza in their rooms without cleaning up after themselves!
You raise a good point. There's little incentive for these exchanges to work with the witnesses, but we really should be building up the exchanges that have the community's interests in mind.
Indeed. However, these exchanges who powered up are now a thorn in our side. They have millions trapped and, trapped between a sword and a hard place, they'll take any offer, whether it comes from Justin or our witnesses. We're better off not letting them choose wrong.
True. There really is no right answer here. You're right that diplomacy is probably the best course of action, though. An ally is worth far more than an enemy...
Every decision made so far has involved some good and bad outcomes, we seem to have gotten a mix of both so far.
It's another hard one.
Yeah, a hard choice to make. If we leave them alone with 13-week power-down, they're likely to support Justin in order to get some compensation for their loss. If we act to benefit them, we'll be benefitting the one who stabbed our back.
They are back peddaling already. It is about more than the steem they locked up, it is about all the other crypto they hold and all the attention they are getting for misusing it. I wonder how many people are pulling out their funds just because they don't want their money in the hands of bad actors.
Posted via Steemleo
If a few people learn that centralization is the problem that crypto solves, it is a good thing. Centralized exchanges are bad. Do not use them, and if you have to only for exchanging.
Exchanges are deemed too powerful by many. 2020 should be the year of atomic swaps, of DEX and of your-keys-your-coins.
No another great case for why has been made. I like the "civil war" that is going on here, because it can teach a lot and there is no blood involved. Game theory at its best :)
Except this feels more like colonization than a civil war.
Posted via Steemleo
"We will free you from your own bad choices"
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