SEC S17W3||On chain metrics of STEEM blockchain

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What are the main Onchain Metrics indicators used to evaluate user activity on the Steem blockchain, and how can they be explained in terms of their significance?

Onchain Metrics indicators are used for evaluation of user activity at Steem blockchain which provides information about behavior and sentiment of users. The main indicators which are used are below 👇

Active Accounts

The more number of active accounts present at STEEM in which unique users are showing their interaction at blockchain is an indication of increased engagement of users

•	If we see that there is an increase in active accounts then it means there is more growing user adoption.

Transaction Volume

The more bs more there are number of transactions at STEEM blockchain the more there is user activity and economic activity.

•	In the screenshots latest transactions addition and newly generated blocks can be seen easily so they are suggesting that STEEM is one of the most active community.

•	An increase level of transaction volume may be an indication of increased user engagement or happening of any particular event.

Token Velocity

How much there is frequency of token transactions shows it's liquidity and user activity.More frequency means more liquidity and users activities.

•	If there is high token velocity then it means that there is a much active market.

Staking, reputation Voting Participation

If users have high participation in staking STEEM tokens and if they have increasing reputation and they are actively participating in voting others and maintaining their VP then it means there is positive trend regarding user activity.

•	My staking of STEEM tokens is increasing day by day and reputation is also increasing as it is clearly seen in screenshots and I am actively participating in maintaining my VP so I am a user contributing in positive user activity at steemit.

Top Holder Balances and Distribution

The more there is a concentration of token ownership top stake holders have the more it is influential for market dynamics.

•	If there is decentralized distribution of VP at platform by stakeholders then it promotes more stronger and healthy market

Smart Money Token Holdings

What are the holdings experienced investors and traders have is a way of suggesting overall market sentiment.

•	Growing level of confidence can be indicated if there is an increase in level of smart money holdings.

Number of posts and comments

•	More number of posts and comments with time is an indication of more active participation of users in STEEM blockchain which is healthy for STEEM development overall.

Number of upvotes and downvotes or flagging

•	Number of upvotes at my post is indicating that I am liked by others in terms of content creating and if I am downvoting or flagging others content due to any abusive act then it means that I am showing my hate for that particular act.

Number of followers

•	I have more than 70 followers so when users follow each other then it means they are interacting with each other in this way also so it fosters a thriving STEEM community.

How can Onchain Metrics data from the Steem blockchain be analyzed to understand user engagement trends and community evolution over time?

Onchain Metrics data from the Steem blockchain are important to analyze for understanding user engagement trends and community evolution with the passage of time by following these things;

Tracking Active Account

It is important to analyze that how much are the number of unique accounts which have interaction with the blockchain with time so it's a way of revealing adoption of users and trends of engagement.

•	Suppose active accounts have increased by 15% than before so this is an indication of growing user engagement.

Transaction Volume Analysis

It is most significant to examine transaction volume with the passage of time because it's a way of revealing economic activity and user participation trends.

•	If transactions volume is increasing per second then before then this surge would show increase engagement of users.

Staking and Voting Participation Trends

When you make analysis of staking trends and voting participation rates with a time frame then it gives a way to reveals commitment of users with STEEM and community health overall.

•	Above I have quoted my personal use case that my interest in staking,in increasing my reputation and in participation trends is increasing so it is helpful to increase marketcap of STEEM so helpful for STEEM making its ecosystem more stronger.

Token Velocity Analysis

To make an analysis of token velocity with the passage of time let us know about extent of liquidity and user activity trends.

•	If velocity of STEEM token is increasing then it means that STEEM token is growing with time.

Top Holder Balances and Distribution Analysis

Top holder balances and distribution understanding by time let us know that what is going on with market dynamics and concentration of ownership.

•	If tokens are going to distributed in decentralized way among top stakeholders then it makes market more stable.

Smart Money Token Holdings Analysis

When you examine smart Money holdings with time then it reveals that which is market sentiment and level of confidence in STEEM Blockchain.

•	Increase level of Smart Money holdings are suggesting growing level confidence in STEEM.

What are the specific challenges of interpreting Onchain Metrics on the Steem blockchain, considering its unique social structure and incentives?

Interpretation of Onchain Metrics at Steem blockchain introduce some specific challenges because of its unique social structure and incentives.

Inflationary token supply

Inflationary token economy of STEEM can be a cause of giving lead to inflated metrics which make it tough to make difference between real growth and artificial inflation rate at STEEM.

•	Whenever there is a surge in transaction volume then behind cause could be token inflation rather than thinking about increase in user activity.But user activity may also be a cause so it's totally up to us how we are distinguishing in both of us.

Reward-based incentives

We all know about reward system at steem so definitely it can influence behavior of users at steemit so it could be a leading cause of metric manipulation.

•	There could be a possibility that users are going to engage in voting circles or self-voting to maximizing their own rewards so in this way they are manipulating systems and artificially inflating engagement metrics.

Community dynamics

Social structure and community dynamics at STEEM blockchain can cause a high influence at metrics so it is making it difficult to separate authentic engagement from that which is just social bias.

•	You can say that a popular user can receive disproportionate engagement because he have more social influence instead of content quality.

Bot and spam activity

STEEM is decentralized we all know so this blockchain is open so it is making it more vulnerable and susceptible for bot and spam activity so it is also one of most challenging thing.

•	Fake transactions or votes may be very easy to generated by bots so this is a way of artificial inflation of metrics.

Token velocity and liquidity

Token velocity and liquidity at STEEM Blockchain may be influenced by trends in market either these are upward of downward trends and trading activities also so this is making it tougher to interpret engagement of users.

•	Market speculation instead of authentic activities of users are indicated if there is high velocity of tokens.

For taking over the control on all these challenges it is much important to consider some of these unique factors I have explained while interpretation of Onchain Metrics at Steem and it's much important to use contextual analysis and to combine multiple metrics for purpose for gaining a more precise understanding of user engagement and community evolution.

How can Onchain Metrics of the Steem blockchain be used to assess the health of its ecosystem, including aspects such as the distribution of voting powers, content diversity, and reward fairness?

Onchain Metrics of Steem blockchain can be used to know about overall health of STEEM ecosystem by analyzing different points I'm explaining below 👇

Voting Power Distribution

It is used for analyzing the extent of voting power among top holders because it shows how much there is a level of decentralization and how much there is significant influence of whales at STEEM.

		@sahar78 account

•	This is my personal account screenshots indicating that I am distributing my VP randomly but among deserving users and trying my best to not bound my votes for some specific users and I am promoting decentralization in this way as well as upcoming votes by others to my account can also be very clear to see.

	@Sc01 account

•	Another screenshot is of Sc01 account in which he is trying his best to distribute his VP among deserving users but unfortunately most of his VP is utilizing in just weekly reports and winners of engagement challenges so steemit team needs other investors too for providing more decentralized support to everyone.

Content Diversity

It is really significant and most important that we are going to examine versatile content being created and rewarded at STEEM but it's a way to reveals ability of steemit to foster diverse perspectives and unique ideas.

•	If everyone with diverse range of topics and contents are going to receive rewards then it shows a vibrant and more inclusive community.

Reward Fairness

Analyzing the distribution of rewards for users are revealing that either the system is rewarding quality content and engaging with users in a fair way.

•	Suppose rewards at steemit are distributed in a fair and equal way then it shows a fair reward system at STEEM.

User Engagement

If you are tracking activity of users like their posting, commenting, upvoting and downvoting then it reflects their level of community participation and engagement.

•	If in last 7 days you have seen that your posts quality and quantity has been increased with number of comments then it means that you have played your contribution in making STEEM growing and active.

Token Velocity and Liquidity

To make an analysis of token velocity and liquidity reflects that what is about economic activity and user participation at STEEM.

•	Suppose there is high velocity of STEEM token and more liquidity so it means that now STEEM has become more active in market trends.

When you analyze these metrics then it let you know about health of the STEEM ecosystem which can be gained by identification of areas need for improvement like;

• To address voting power centralization.
• To encourage content diversity.
• To adjust reward algorithms for fairness.
• To foster user engagement.
• To promote market liquidity.

This data-driven approach is enabling to making informed decisions for maintaining a much thriving Steem ecosystem.

How can Steem blockchain developers utilize Onchain Metrics to enhance platform usability, drive adoption, and address scalability issues while upholding community integrity?

Steem blockchain developers can use Onchain Metrics for enhancing platform usage which may drive adoption, and it also address scalability issues while maintaining community integrity.

Optimizing User Experience

If you are analyzing user behavior and engagement metrics then these are helpful in identification of optimizing user experience and to and improve platform usage.

•	In an example it is important to note that streamlining the onboarding process depends on user drop-off rates.

Incentivizing Quality Content

By the use of metrics such as content diversity and engagement is used for rewarding high-quality content and for encouragement of meaningful contributions.

• | Development of algorithms can be utilized for detection and for giving reward to unique and deserving content.

Scalability Solutions

It is significant for making analysis of transaction volume and token velocity for identification of bottlenecks and for implementation of scalability solutions.

•	There could be implementation of sharding or side chain transactions for increasing thorough put.

Community Engagement

By the utilization of metrics such as user activity and voting patterns for identification and addressing concerns related to community.

•	You may introduce community-driven moderation tools for reducing or minimization of spam and abuse.

Reward Fairness

If you are going to analyse regarding distribution for the purpose of maintaining fairness then there is a need to adjust some particular algorithms for the promotion of community growth.

•	There could be the introduction of reward curve for the incentivization of new users and for the reduction of whale dominance at STEEM.

Growth Hacking

There are different metrics including acquisition of users and their retention rates that can be leveraged for the development of targeted growth strategies.

•	New users can be attracted depending upon the demographic analysis if you are going to launch some targeted marketing campaigns.

By understanding or having a know how of Onchain Metrics, STEEM developers can create a much scalable and engaging steemit platform for driving more adoption without any compromise in integrity of blockchain or community.

I want to invite

@msharif
@stef1
@dexsyluz
@suboohi
@artist1111

Have a blessed day