Blockchain Fiction: Steem Introduces Baffling New Economics

in fiction •  6 years ago  (edited)

(GCN) -- On the heels of their flagship site coming out of beta, the Steem platform has announced intent to chain their economic yet again.

The goal of these economic changes would be to move Steem closer to delivering on the promises stated in the whitepaper of unearthing high quality content by making it more profitable for people to actively curate, and less profitable to self-vote and delegate one’s Steem Power to bid bots.

The three-part plan can be summarized as:

  1. Moving from a linear rewards curve to a convergent linear rewards curve.
  2. Increasing the percentage of rewards that are distributed to curators.
  3. Create a separate “downvote pool.”

GCN e-mailed one of the block producers who wished to remain anonymous, who said:

"It's actually not much different than changes made before because they're just reducing some of the rewards from the current reward model and adding a bunch of new ones."

Full article: Improving the Economics of Steem: A Community Proposal

This announcement is likely a small esoteric step towards bringing a more accessible, efficient way of doing some kind of content discovery on the blockchain, which if recent history holds true, should be in high demand.

Meanwhile, some of the other blockchain based cryptocurrency platforms, like Bitcoin Cash (BCH) which is a decentralized cryptocurrency based on Bitcoin and other cryptocurrencies, has had mild success with their own social network called memo.cash, albeit without any economic philosophy other than the "tip economy."

In both systems, key to the respective plans would be to build a consensus mechanism that allows an external client to discover content. This approach could, in theory, also work with an Ethereum or EOS smart contracts, which would allow nodes to be queried to identify content in a block using cryptographic signatures, or something.

The question is, will these new Steem economics directly contribute to content discovery? Is that even their vision?

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Generic Crypto News and AI contributed to this report.

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I'm sure users will come from far and wide! This strategy is brilliant.

New users are like, "Baffling New Economics? I love Baffling New Economics!"

If that’s their vision then it may contribute to content discovery.

Posted using Partiko iOS

At first, I was thinking that more or less it won't have much of an impact to most people around...at least the active ones...that, with the hope that those who have large amounts of SP will be triggered to vote some post where normally they wouldn't...right?
I mean they have to use their damn VP somewhere...unless of course if bid bots will remain more profitable even if a 50-50 split takes place.

On second thought, I can only imagine what will happen to newcomers' posts...Even now that they acquire 75% and still getting pennies....They are the ones who will be affected most, since they won't have voting strength to earn curation rewards...unless they invest in steem which I highly doubt it...

Don't know. Don't care. I just want something to market. If it's this, then let's get on it.

All three of those 'solutions' put money into the pockets of the rich by taking it from the poor. It also shows that Steemit inc has complete control to modify the flow of inflation however they desire, so long as the witnesses and big stake holders can make more money off of it. That is the real problem: the obviously centralized power to make this decision is theirs alone to make.

We can fix it later.

I mean... I guess... if we build up a big enough community of open source programmers anything is possible.

The other thing we can do is power down and sent our STEEM to Steem Engine. Just saying.

I am powering down 100% of my steem due to things like this(I think it is done in 8 weeks). This just further proves they don't know what they are doing. Even though I only invested about 1,000 USD into it, I can't in good conscience leave it invested in Steem, given what other coin innovations are happening I see way more potential.

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