RE: Let's talk about the Steem Proposal System (SPS)
One of the caveats with these funds - which is often overlooked - is the fact that since they are being offered as pay for development, there is a high likelihood that one result is a constant downward price pressure on the Steem token as developers/beneficiaries will be looking to sell the tokens they get paid.
That might not have been an issue when Steem was a top-50 coin, but now that we're hanging around at no. 400 and lower it could become problematic.
One of the potentials for abuse of the SPS is the possibility of it becoming a circle-jerk for the biggest stakeholders... which could possibly be circumvented by enacting some form of weighted voting, or capping support votes at 50K SP or something like that, meaning a larger number of community members would have to approve a project for it to fund. Otherwise you end up with a system where a single account (like UPVU, for example) has the power to decide what gets approved and what doesn't.
Would the corporate model work? I honestly don't know...
Well, it could be that some downward pressure is needed on the price of SBDs. I like getting overpriced SBDs in author rewards as much as anyone, but I'd really rather see them pegged near $1.
But you're right that there's a risk there. I would expect the fund manager's strategy to include controlling the release rate.
In the end, I see three possible paths (though we can change direction again at any time):
I agree with this:
Sooner or later, I think this is a very likely result if we don't come up with some governance model that imposes a fiduciary duty on the recipients of the funding. And as the fund continues to grow in value, it becomes increasingly attractive to someone who is prone to misuse it.
Yeah, I guess there's no way to know without trying it.
Thank you @event-horizon!