RE: Steemit Update [Oct 13th, 2022]: TRON & Steemit Integration Project Update

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Steemit Update [Oct 13th, 2022]: TRON & Steemit Integration Project Update

in steem •  2 years ago 

Nothing is being burned here, the author still receives the SP and the TRX, the only change is now they are receiving half the amount of TRX. Still receiving same amount of SP.

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The same amount of SP stay, but the equivalent in ratio has changed. Now where does half the amount of TRX go too?

I know we will want to put the same analysis with steem/sbd ratio. But then again why the change in ratio, if the team is not working on a something balance the two.

I understand what the author will receive, my concern is how it help the platform and how it better the ecosystem. For some time, burning has been on the table. So I think this change in ratio give one more value over the other, which can technically be a way of reducing one in circulation.

Example can be:
I used to give 1TRX, but now i will start giving you 0.5TRX.

Well, its my opinion and not saying that is what is going on. We will understand more in the days ahead, or may been a better explanation.

It's very simple... They have a fund that pays out TRX for every SP earned. Now, instead of paying out 1 TRX for every 1 SP earned, they will have it pay out .5 TRX for every SP earned. The only result is that it takes longer for the fund to run out of TRX and users get half as many TRX as they were getting before.

Sometimes it can be so simple. 🙄

Yep, would have been cool to see a double instead of halve though! :)

  ·  2 years ago (edited)

They have a fund that pays out TRX for every SP earned

Thank you, @jrcornel this is very clear now and understood. That is why I said in one of my comments that except that they have a fixed fund for this. Then it will make sense that with the increase in the number of steemians, such a decision needed to be made. Other just keep talking about the payout ratio, which was not a problem. I was interested in the motive of the strategy toward both ecosystems.

The update mention 23 Million TRX (worth ~$1.4 Million) invested into the Steemit Ecosystem for the month of September 2022. Given that I didn't have information about the other months, I did not quickly think about the direction of your response. It makes more sense now. TRON & Steemit Integration Project has boosted engagement on the platform now for the past 22 months.

If nothing is being burned, why devalue Steem and inflate Tron at post payouts?
What accounts for the difference in exchange rates at post payouts VS the current market exchange rates?

It is nothing to do with exchange rates. It has to do with post payouts only. Instead of everyone receiving 1 TRX for every 1 SP they earned, they will receive .5 TRX for every 1 SP they earned. The only effect is everyone earns half as many TRX as they were before.

Please, Can you give possible explanations for the questions asked above?

  ·  2 years ago (edited)

It has nothing to do with exchange rates. They have a fund that pays out TRX for every SP earned by users on Steemit. Previously they set that fund to pay users 1 TRX for every 1 SP they earned. Now they are changing that payout to be .5 TRX for every 1 SP earned. The end result is everyone earns half as many TRX as they were previously. Your guess is as good as mine as to why they decided to cut the TRX payouts in half for everyone...

Your guess is as good as mine as to why they decided to cut the TRX payouts in half for everyone...

My guess is that this is how they're able to fund the Steemit Development Incentive Program.

If that's the tradeoff, I'd definitely choose development over TRX matching.

  ·  2 years ago (edited)

Yea they kind of mentioned that as the reason in the post, saying now that they are implementing the development program they are adjusting the TRX payout ratio... Hopefully the development ends up being a positive. In my experience these development funds almost always take more value than they ever create... we shall see I guess.