SEC S17W5|| Whales in STEEM blockchain

At Steemit platform, "whales" are those users that have a significant amount of Steem Power (SP), which is currency of steemit. These users have significant impact at platform's governance, content moderation, and reward distribution. Whales are significantly considered to be users that have atleast 500,000 SP but their threshold can fluctuate.

Whale have some particular responsibilities to the community I'm explaining here.

1. Content curation:

Whales have a significant say for determination of that what type of content is rewarded and promoted on the platform and which is not.Whales can curate high-quality content so in this way they give significant support to creators and contributors.

As an Example

We all know there's a whale named @steemitblog (with over 1.5 million SP) that curates and rewards quality content at regular basis and promote engagement and community growth.

2. Governance:

Whales can participate in decision making processes so they also vote on proposals for development of steemit and for shaping steemit future.

As an Example

Again there's a whale named @berniesanders (with over 200,000 SP) has gave his votes at different proposals so it acts like contribution to the development and growth of steemit platform.

3. Community support:

Whales also give guidance, provide mentorship, and significant resources to new users for helping them in navigating platform and for growing their presence.

As an Example:

@pennsif (with over 50,000 SP) is also another whale at steemit we all know who engages with new users, offer them advice and support at steemit and foster a sense of community.

4. Role modeling:

Whales are ideal for other users by demonstration of positive behavior, and by promotion of a culture of inclusivity and by a constructive feedback.

As a Example:

There is another whale named @ned (which contains over 1 million SP)and he engages in respectful discussions and development ideas of steemit in active way,so it promotes constructive dialogue and in this way it set a positive ecosystem for the community.

Whales are also reffered as large stake holders of cryptocurrency which significantly impact value of cryptocurrencies such as STEEM. Whale actions can effect market because of their significant holdings that can be equivalent to millions of dollars.Now I am explaining that how they are influencing value and play a role in the STEEM blockchain.

Influencing Value

1. Market manipulation:

Whales can easily manipulate prices of tokens by trading (Buy and sell)large amounts of Steem so it is affecting market trends in this way and also influencing decisions of users.

As an example:

If there is a whale selling a large amount of Steem so it would cause a price drop, that can be a leading cause of intending other users intentions to sell so it further bring down the price.

2. Liquidity provision:

Whales may easily provide more liquidity and can enable other users to trade Steem in quick manner that can make market more stable.

As an Example:

If there's a whale maintaining significant Steem balance so it would permit others to trade with them which ensures more liquidity and market stability.

Role in Steem Blockchain:

1. Validation:

Whales are responsible for participating in validating transactions and blocks addition so it ensure overall integrity of the blockchain.

As an Example:

There is a whale such as @steemitblog (with more than 1.5 million SP)which helps in validation of transactions so it contributes to the security and stability of Steem blockchain.

2. Governance:

Whales utilize their VP by voting on different proposals, so it shape development and growth of the Steem platform.

As an Example:

There's a whale names @berniesanders (with more than 200,000 SP) that vote on different proposals so it influence direction of Steem development and its growth.

3. Content curation:

Whales also curate content of high quality so it promotes high-quality posts and rewards creators in this way.

As an Example:

There's a whale@pennsif (with more than 50,000 SP) and he curates quality content, so he is supporting creators and in this way be is alI contributing to steemit overall quality.

Whales at Steem posses significant Steem Power (SP) so they have to go through different phases of activity that can effect other users. Some of these phases I'm explaining here.

1. Accumulation:

Whales purchase and stake Steem for increasing their SP.

As an Example:

We all know that @steemitblog (with over 1.5 million SP) has staked and accumulated Steem so it increase their impact and voting power.

2. Consolidation:

Whales help in maintaining their SP so it stabilize market and influence it's prices.

As an example:

There's another whale by name @berniesanders (with over 200,000 SP) and he is consolidating his holdings so it provides liquidity and stability in market.

3. Distribution:

Whales also sell and may power down their Steem so in this way their SP may reduce.

As an Example:

If there's a whale which is selling significant amount of Steem, cause it's price to drop and intend other users also to sell.

4. Engagement:

Whales can also participate in curation of quality content, in maintaining their voting power and governance of steemit.

As an Example:

There's a whale @pennsif (with over 50,000 SP)keep himself engaged with content so supports creators and shape the platform ecosystem.

5. Dormancy:

Whales by becoming inactive can reduce their impact at steemit.

As an Example:

If there's a whale account becoming dormant so it help in reduction of their voting power and market impact.

These are some phases affect other users in various ways I'm explaining below;

• Price volatility because of accumulation or distribution
• Fluctuations in liquidity (Increase and decrease)
• Modifications in content curation and distribution of reward.
• Shifting in governance and voting proposals.
• Motivation or discouragement for users especially that are new.

Users at Steemit can face different challenges because of presence of whales and it includes;

1. Market manipulation:

Whales can impact prices, significantly leads to volatility and significant loss for smaller users.

2. Unequal reward distribution:

Whales can show domination at reward pool so it leaves smaller users with less earnings.

3. Governance influence:

Whales can give significant shape to platform ecosystem so it significantly disregards interests of new users.

For protection of their investments, users can adopt the following strategies I'm explaining here

1. Diversification:

Spread of investments across particular different assets which helps in reduction of their complete dependence at steem.

As an Example:

You should invest in other cryptocurrencies or assets for minimization of exposure to STEEM token fluctuations in its price.

2. Research and due diligence:

Understanding of platform governance, and market trends either they are positive or negative are really important.

As an Example:

You should always stay informed about innovation and development in STEEM ,their proposals, and market analysis for making other informed decisions.

3. Community engagement:

You should participate in significant discussions, which helps you in building relationships, and collaborating with other users.

As an Example:

You can join different steem communities, and may engage with content creators that have high quality content and you can give support to initiatives tha can bring advantages for steemit platform.

4. Voting and governance participation:

You should properly utilities voting power and show your contribution to governance decisions.

As an example:

You should vote on different proposals, engage in discussions, and support that initiatives that are of your interests.

6. Risk management:

You should set limits, think about diversification of investments, and prepare for market volatility.

As an Example:

You should set stop-loss orders, you should involve in diversifying your Steem staking, and in maintaining a balance portfolio.

Presence of whales at Steemit can effect user participation and engagement in different ways I'm explaining below

1. Intimidation:

New users can be disappointed from participation because of their dominant influence of whales.

2. Unequal reward distribution:

Whales also receive larger amount of rewards, which leaves little users with reduced earnings, significantly reduce their motivation for contribution.

3. Limited visibility:

Content from little users can be overshadowed by activities of whales which make it tough for new voices to be heard.

For encouragement of more diversity of voices and contributions

1. Community initiatives:

Launching of programs such as "Steem Newbie Support" or "Community Curations" is used for highlighting and rewarding new users' quality content.

As an Example:

@steemitblog's have their"Newbie Support" program showcases and rewards new posts of little users like (Weekly team newcomer report)

2. Mentorship:

Pair experienced users with new ones provides more guidance and support.

As an Example:

There's a whale named @pennsif have its "Mentorship Program" which match experienced users with new ones so it fosters a more growing and engaged community.

3. Incentives:

Offering additional rewards or recognition for their several contributions from new users.

As an Example:

"Steem Diversity" is an initiative which may reward it's users for their engagement with and to support new users.

4. Governance participation:

For encouragement of little users for showing their participation in voting and governance decisions.

As an Example:

"Steem Governance" is another initiative which helps in educating and empowering new users to participate in decision making processes.