Breaking my spiritual retreat for an announcement that I must make with reasonable advance notice.
PWR rewards for delegating Hive Power to 
Yes, I know I said in my last post that they're going to be reduced down to ~10% from 15%, but I've changed my mind.
With the latest HF and due to the low price of HIVE, overall inflation on the chain has fallen by ~25%, which IMHO is a good thing. But that means that curation rewards are logically 25% lower on average and have fallen from 8% to ~6.5%.
This makes the delegation model even more unsustainable (if you pay +10% on average which I've been doing for the last year).
Another thing that worries me is that if we were to enter a bear market now, maintaining these APRs and a healthy price would be very difficult.
I would rather cut back now and get ahead of a bad situation than risk the bad situation forcing me to make that same decision anyway.
Deep down, I have a responsibility to PWR holders (myself being the largest of them) and that is to do nothing more and nothing less than what is best for the token and the project.
So, after thinking about it a lot and weighing it up, I think it's simply better to let it go. Even more so considering the constant stability issues with Hive-Engine, which literally causes problems every 1-2 weeks.
We can only adapt.
Although this move may be perceived as a loss, it also brings some good things. The most immediate is that PWR inflation will be reduced by ~90%.
- Currently 230.000 in delegated HP generate 10.350 PWR/year or ~8,3% PWR inflation over a 125K Supply.
This is being cut off entirely. So all we have left is the recently reintroduced inflation from staking rewards.
- That is 1752 tokens per year or 1.4% (and that's it).
We could consider it another step toward a growth token structure. Even if it means doing something that seems like “taking a step backward.”
TL;DR:
- PWR Delegation rewards will stop on 1 Jan. Plenty of time to undelegate, 15% APR will be kept until 31 of December.
- Inflation reduced in a ~90%
- Remaining tokens in the distribution contract will be returned to
(since they were repurchased earlier).
Any doubts, reach to me on discord. I'll be away for a few more months.