RE: Improving the Economics of Steem: A Community Proposal
I would like to see, that the Coin "Steem" and its "Reward Pool" will be designed more towards an infrastructure Coin instead of using it primary for POB content discovery. The reason for that this is, that with the introduction of communities and SMT the Steem Ecosystem is not only more about "Content creation" and discovery.
No, we have a bunch of financial dapps, gaming dapps, services etc... which don't have anything to do with content discovery. All those Dapps should have more or less "equal" chances to receive Support from the underlying Steem Reward Pool mechanism to earn and empower their communities.
I think Steem is good with Steempower for Voting on Witnesses and Proposals (plus a new feature in the future Voting for Communities and Dapps) and as a source of Ressource Credits. For me that should be enough, on the level what Steem is doing to support its Ecosystem and for the use of the POB mechanism...only vote for Witnesses, Proposals and SMT or Communities.
No, more voting and abusing the reward pool by creating and discovering or gaming the content creation part.
All this POB content creation and discovery mechanism should be happening on the level of SMTs, and its communities, because these groups will have Admins who are able to set in rules how each community handles its users and the way they value content creation.
If Steem gets understood as a infrastructure Token and SMTs are understood as a empowering Community Token, than we have a clear Vision for all participants Investors, Users and Creators alike.
I don't like the idea that we are aiming for a SMT Ecosystem where all these project fight for attention but the real mining of Steem only happens on the content side of things...somehow that doesn't make sense.
Why should other Dapps or Communities suffer from miss management of the Steem Reward Pool which is only used for content creation and discovery?
This time around I fully understand it! I tend to agree in principle - with one caveat:
The amount of staked SP in each project will determine the level of support for each d.app, give or take some cross over curation activities. A community with 100,000 SP staked will receive 10x more of the reward pool than a community with 10,000 SP staked, and 10x less than a community with 1,000,000 SP staked. This is in line with the 'every SP counts' system of voting, although there is currently a regressive 1.2 sp tax on distribution, if I recall correctly.
Thank you for your support.
I don't really have a fixed idea of how much of the percentage of the reward pool should go in this case to SP holders, Voting for Witnesses or SMT / communities. But it is clear that projects who hold SP in their main account will not suffer of any kind of content abuse nor abuse of the reward pool this is my main point here.
We should design the Ecosystem of Steem in the way that the fundamental structures are easy to understand, easy to apply, with clear benefit structures and to avoid abuse.
What happens on the level of SMT and communities is all up to the users and developers how they wish to handle it.
In this Vision it is also clear that Steemit.com needs to become its own SMT Project / Community by itself without the only dependence of the main Steem Reward Pool.
I actually think that is already happening, except without the extra token. So in this case, Steem and (new token) will be distributed in each SMT/Steem-Engine project, each based on the respective stake.
So I think we are seeing less stake being used for 'quality content curation' and if communities like (off the top of my head) freewritehouse, thewritersblock, steemSTEM, dtube or others want to give their own tokens for their niche content judged to their own quality standards that they device, they will also deliver Steem in their votes to the level of staked SP.
With more communities coming in, there will be pressure on the Resource pool for transactions and account claims, which will create an SP sink. This is the idea, anyway.
(OOC: This turned out to be stream of consciousness, I'm not sure I am actually responding to you anymore but I wrote enough that I'm going to post 🤣)
Give me an example of a business that is both good for the ecosystem and whose success depends on Steem itself to not function as a proof of brain content discovery and rewards token. Or give me an example of a project which would bring value to Steem whose prospects are hindered by Steem's ability to function as a content discovery token. I can't really think of any but I'm open to the possibility
The reverse is much more likely to be true: a working content discovery and rewards platform with a functioning front page will greatly attract real users and investors. This user base can then in turn be leveraged by businesses built using SMTs and Communities which will in turn bring more value to the system as a whole.
With the Steem economy how it is currently, voting rewards are predictably used as staking returns or payment, which is precisely how they should not be used. Profit minded businesses using voting rewards in lieu of transfer are far more likely to extract value from the system than contribute any real value themselves. And it's not their fault - we simply have the wrong economic incentives in place.
If we wait for SMTs and Communities on a broken system, when our front page is in disarray due to spam, bid bots and self votes and our alexa and cmc rankings are dropping steadily, how realistic is it to expect businesses built over this rotting core be able to garner the legitimacy and confidence required to only thrive itself but completely turn this place around? You're far more likely to get a few just extracting the dwindling value of this place and then moving on to greener pastures.
The underlying economy of Steem must be fixed. They're a higher priority than anything else and require far less investment, but they're the only change that can turn this place around and infuse value to every other endeavor we pursue (SMTs, communities, marketing etc.)
The reason this is true is because the incentives are misaligned. Any curation rewards are simply additive to corrupting curation for maximizing financial extraction, a la @therealwolf. Only providing a mechanism that financially encourages development and improvement of Steem better than rewards pool rape will change his behaviour. Tweaking rates will not do that, without adding another more profitable mechanism.
We need to focus investment on capital gains, not extracting gains from working capital intended to market Steem. Capital gains have worked to grow industry for literally thousands of years. Let's use that to our advantage.
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Hi, thanks for your responds @trafalgar.
I can't give you proof of an actual business that decided not to come here, or said that they are hindered by Steem's ability to function. How should I know that? I don't run a business and I have no insight in other businesses books.
But it's clear, that the current Reward System has some fundamental problems that are effecting everyone alike e.g. Users, Investor, Businesses, the perception of Steem in general etc...
I think you gave to yourself the best answer on this point...here is your quote.
"If we wait for SMTs and Communities on a broken system, when our front page is in disarray due to spam, bid bots and self votes and our alexa and cmc rankings are dropping steadily, how realistic is it to expect businesses built over this rotting core be able to garner the legitimacy and confidence required to only thrive itself but completely turn this place around? You're far more likely to get a few just extracting the dwindling value of this place and then moving on to greener pastures."
I agree, but in order to achieve that we need Admins for communities who set in rules and fight Bid Bots, abuses etc... All the good stuff about POB should happen within the communities, where there is some sort of guidance for the users, or even if some communities wish no guidance. The point here is that we need competition thru out the Frontends on a plain level field where all communities have the same access to the Steem Ressources aka. Steempower and Reward Pool. Thats why I would like to see Steem as an almost "pure" infrastructure Token (Voting for Witnesses, Voting on Worker Proposals and Voting on Dapps or Communities and SMTs or SteemEngine as the POB layer where Users create and curate for content.
I totally agree.
My suggestion has only that in mind to make Steem on a fundamental level more easy to understand and to handle so that the complexity of the POB mechanism can thrive within the different Dapps and Communities.
I see, maybe I misinterpreted your views, I'm sorry, I was going through a lot of responses
I merely like these economic changes implemented sooner rather than later as they're imperative for a functional content discovery and rewards platform. I don't believe SMTs and Communities could sufficiently mitigate all the ill effects of our currently economic failure want wouldn't not want to rely on them exclusive to get us out of this mess.
It's not really a choice between SMTs or a working economy, the latter should take very little implementation time if we can work out the details and converge on the right numbers. So either way, it won't be much of a setback or delay for SMTs and Communities :)
This is exactly the problem, and tweaking rates and splits won't end it.
We need to end it, and we can.
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I really appreciate your efforts in order to change the mathematics behind the Reward curve in order to bring more quality and value into content creation and curation.
I think your solution of how to reward content creators and curators should happen on the level where the Action is...in Communities and SMT projects.
If we still try to fix the reward curve on the Steem Blockchain level we will still miss the problem that the Steem Ecosystem is not mainly about content creation and curation!
The fact that we have real business minded projects like Steemmonsters, who bring in value thru an awesome gaming platform, are still in competition to its underlying base Blockchain structure, which is Steem tangled up with Steemit.com (Aka Blogging) + Reward Pool distribution.
Its genuine counter productive to have the Reward Pool tied up to one aspect of the Blockchain - Blogging / Steemit.
The Baselayer Steem needs to be just an infrastructure Token which is good to serve RC ressources, Voting rights for Witnesses / Proposals and maybe approved Dapps and Communities (selected by the Steem Foundation).
I hope that you understand that I like your ideas and they will find their way in the POB mechanism, but they need to be implemented at the right level on the Blockchain, which is IMO the SMT projects and Communities.
Exactly, in terms of financial incentives and how they have demonstrably been used.
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Reducing the inflation of steem by exporting POB to SMT's sounds like an awesome idea. Keeping investors happy is one of the big reasons we are at #60 now. But I'm cashing out anyway, tired of waiting for steemit inc to have an investor friendly strategy.
That's why dan left lol
Yep, I agree with a lot of this. Have this be on the SMT level.
Thanks for your support @jrcornel
l'm keen to know, what the Steemit Team has to say about this.
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