So I was a victim of a substantial bitcoin heist. My now hold my bitcoin in mutlisig cold storage paper wallets in several continents in several private vaults.
To achieve the same level of security without paying this fee, I would have to fly all over the world ever year, so yeah refreshing cold wallets every year is annoying as hell. For serious corporate investors this would absolutely be a huge problem.
Additionally I want people to put their btsx in cold storage. Its helps drive the price up as they are not as quick to sell.
Further it seems quite rude. Imagine if Apple or Amazon told shareholders that if they did not trade their shares every year, they would slugged with a 5% tax. That would turn off people using it as a retirement investment.
It is pretty rude and disincentivises desirable behavior, however, if it is possible that "lost coins" will get "stuck" voting for a delegate, then I guess it is possible end up with an undesirable delegate.
If this is the real reason, then I can think of a way around it, but I think its pretty rude to leave it in there.
Someone mentioned it is not implemented though... did I read that right... it is not even part of the protocol anymore.
In that case, I will shut the hell up and move on with my life.