Steemit Economics (Positivism vs. Praxeology) [Part 2]

Positivism vs. Praxeology

Positivism is a philosophical theory stating that positive knowledge is based on natural phenomena and their properties and relations. Thus, information derived from sensory experience, interpreted through reason and logic, forms the exclusive source of all authoritative knowledge. Positivism holds that society, like the physical world, operates according to general laws.

Praxeology is the deductive study of human action based on the notion that humans engage in purposeful behavior. According to its theorists, with the action axiom as the starting point, it is possible to draw conclusions about human behavior that are both objective and universal. For example, the notion that humans engage in acts of choice implies that they have preferences, and this must be true for anyone who exhibits intentional behavior.

• People's primary purpose on Steemit is to make money.
• People are not generally rational.
• ~90% of Steem is held by ~1% of Steemers (whales)
• Whales promote content that will draw more people and content into Steemit.

This model is stable so long as people see people win (and win themselves every now and then). 

Content quality will increase as the following progresses:

• Redistribution of Steem (more whales, but smaller whales)
• Follow functionality (keep up with content providers one appreciates)
• Subscribe functionality (maturation into subreddit-like structure)
• Simple, yet advanced, GUI

I would prefer the masses in each tag/topic to control its administration without admins (unlike reddit). But hierarchical structures are natural, emerging out of the brain's limitations to optimally compartmentalize and manage. So this may not be avoidable.

To conclude, praxeology, and not positivism, will be the driving force for Steemit. The system was designed to allow the masses to create content while the whales curate. It is up to the whales to curate content that will promote more content and more users. Genius.

Content creation contests will be a bastion for amazing content. If people can win based on merit, others can't complain about not winning. This will force better content, greater participation, and nullify the many who complain about what wins and what doesn't.