Exactly. It's Hive being powered up, but permanently. Permanent staking. 

Although, @yintercept did bring up a good point, it’s only as permanent as selling your account unless you program it in a way that you cannot do so.

If we reset the master password to the account, I believe that changes all of the public key/private key pairs of your other keys such as posting, active, owner, memo.

So, I wonder if it can be created in a way where you also have a burn key? If you reset the master password, it would destroy the public/private key pair of the burn key.

As far as if investors would show interest, I think it depends on incentives. 

If you make a list of all the incentives to hold regular HP, you’d have to have much higher incentives than that to get users to risk burning liquid Hive for the greater rewards.

But, as whales and other users who have more assets to risk begin to do so, it would create pressure for almost everyone on Hive to allocate a % of their Hive to PHP in order to stay competitive in curation rewards, bandwidth, and other incentives HP gives you.

I would think there would have to be a threshold at which PHP users are reaping from the rewards pool at a higher rate than regular HP, that it would give incentive to allocate some of your Hive to PHP.

The reward from that is the overall total liquid Hive is reduced creating more value for existing liquid Hive, and you gain the ability to gain additional rewards from the risk of committing to a permanent stake.

The downside is a permanent stake could go to zero if Hive fails long term. But a permanent stake should create more incentive than HP which can be powered down, and users cut and run.

I have a feeling you would probably never see the overall % of PHP be higher than HP. People want the safety net to cut and run. But it would be interesting to see if and a how an addition of PHP would act in real life.