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I couldn't have said it better.

The problem is that we are relying on the whales to flag in order to reduce the rewards for a user. That doesn't scale because it requires manual effort.

Is there a way that this can be solved in an automated fashion?

A Flag Curation trail of sorts?

Anyone can donate SP to @steemlegion.

You could probably get a donation pool to an account that flags all of his posts, but honestly I don't know if I necessarily like the idea of targeting a user like that. I agree that he's unlikely to post anything that's worth much, but it just feels like a bad precedent.