I tried to think about these entry/exit/instant-pd fees from game theory point of view. I agree,  in theory, these fees can add value to long term holders. However, the problem I see is that fees will discourage majority of people from powering up. 

I don't think it will encourage people to power up. There are already incentives like certain percentage of inflation goes to the HP holder, but I doubt any of the HP holder really care about that, since they aren't that significant. 

I agree anything that adds more value and benefits to HP holders is good. But not sure it can be achieved with fees. It may make sense from whales' and speculators' point of view when these costs can be offset by the potential profits. However, for an ordinary participants with less than orca/whale funds to invest, this will serve as a discouragement from powering up. 

13-weeks power down already does that. There are many who don't power up just because of this reason. People keep misunderstanding this 13-week pd obstacle as presenting as long term investor vs short term investor thing. In reality, it is about psychology of knowing that one cannot withdraw funds quickly when needed. I would even argue with shorter period power-down, more people will hold their Hive as HP for a much longer time, just because they know they can get out when they need to.

That's why 4-week power down makes sense. Ideally, the shortest possible pd time would be best. But at least 4-week serves as some kind of compromise to keep everybody happy. While yes 4-weeks is still long time, but the fact large sums are already released in one week maybe just enough of confidence to power up.

Also, these percentages are very high. Let's say I have $100K to invest. I probably would not power up knowing I would have to pay $5k as a fee. I also probably would not power up knowing I will have to pay $10k to withdraw my money. 

In my opinion, Hive Power serves as alternative to other forms of investments. Many people hold assets like Bitcoin, Litecoin, Ethereum, etc. They just hold, not doing anything with them. Question is how would we attract them to park their assets as Hive Power? Why should they go with Hive Power when there are assets that keep appreciating in value. Fees wouldn't do that, long period lock ups wouldn't do that. 

If we continue to have power up periods, yes it makes complete sense to have some sort of mechanism for instant or near instant full power down even with fees and certain security measures in place. Maybe 3-4% would be reasonable. 

Having the lowest power down period possible would be the best. Free market works best when there is more freedom provided for the participants on how to handle their assets. Security vs Freedom arguments have been around for a long time. I think if we really wanted to, we can have both. And that can be the innovation of Hive that will attract many to join. Everybody wins!