Just the tip and the non-withdrawal technique

in #steem5 years ago

About a week ago, @nonameslefttouse wrote a fantastic blog about blogging - Meta. There was of course a lot more in it than that and he added a passage about tipping content producers and I thought I would add a few of my own thoughts to it a bit, without knowing if I am adding anything at all.

He mentioned a one penny vote, so lets go with that and for that, we need 600 Steem, which is around about 180 dollars worth at current prices. With all things remaining equal, that means that 600 Steem can deliver 10 cents a day in votes using the 10x100% rule. Not much is it?

Well, that is 36.50 a year. Still not much is it? But that is 36.5% generated from the initial investment and would have a payoff return 180/36.5 in 4.93 years - lets call it 5 years. wow! That is a long time!!!

But, this is forever. That first 180 dollars invested will be as good at drawing out of the Steem pool now as it will be then and in 10 years from now. But, once this idea actually catches on, the demand grows because, why the hell would someone be tipping money when they can tip with something that doesn't disappear?

Do you know how many people can hold 600 Steem simultaneously?

533,333

There is about 320 Million Steem currently available all up, that means that if distributed equally - 533,333 accounts can have 600 Steem each - but:

There are 198,000,000 already powered up, my 50,000-odd included and - you can't have mine.

That means there is actually only about 120,000,000 Steem currently up for grabs which means, only 200,000 accounts could buy 600 Steem each today. That really isn't many and while some people think that why would you do that for 36.50 (all things remaining equal) today, people have that 180 dollars in a bank earning less interest than the inflation rate - it costs to have savings... interesting in itself.

But again, that is all things remaining equal and if 200,000 accounts did buy the Steem on the markets, the price would absolutely skyrocket as demand, scarcity and FOMO get to work. That means that the 1 penny vote moves with the price too.

1 penny of SP value at 30 cents, means 10 cents at $3.00.

This now means that instead of 10 cents a day, it is 1 dollar a day or, 365 dollars generated a year. If price suddenly went to that, the payback period would be shortened from 5 years to 6 months. But remember that 50/50 curation thingy, That means that just by tipping authors, the complete payback is 1 year, plus 130 dollars has been generated for authors.

At 3 dollars, 1000 voting accounts would generate a dollar a day or 365,000 dollars in value a year. With 50/50 curation, 130,000 would go to creators, 130,000 back to curators. Not bad if those 1000 accounts happened to buy 180 dollars worth of Steem today. 180,000 would generate 365,000 a year worth. Every year, all things remaining equal at 3 dollars.

An author posting 5xweek and getting 1 vote from those 1000 accounts would make, 250x100= 12,500 a year and, those accounts could do that for 14 accounts of creators and take the same amount back themselves. But, if there were those 200,000 accounts with 600 Steem power - that would be 200x14=2800 accounts getting supported and earning the equivalent of 50 dollars a day.

But of course, 600 Steem is not enough to make a difference...

Oh - you might have figured something out at this point. This is on the 120 million liquid Steem that is currently out there which means, this would be essentially tripled if all 320 million were voting similarly at 3 dollar Steem, meaning about 8000 accounts earning 50 dollars a day - 400,000 dollars a day- plus the voters taking 400,000 dollars a day also.

But of course, they aren't going to earn like that.

There will be some accounts that post and get 10 cents, some get 1000 dollars and some that get zero - but with higher priced steem, the value earned will be significantly more and can support much more widely and deeply. This is highly attractive for good content creators and, it is highly attractive for consumers as they are able to buy and still earn and not have to keep buying over and over to keep tipping their favorites.

But, Steem is getting both popular and scarce when price goes up, pushing price up further. This means that at 6 dollars, all of this doubles again, and doubles again at 12. This doesn't necessarily mean that an author will go from earning 12,500 a year from 1000 accounts to earning 50, as consumers will start to spread their votes differently too and of course, will see that some deserve more support than others.

And remember, this is just on Steem. Start to factor in the other token pools out there and author earnings as well as various consumer earnings go up also, to create a very complex but robust economy of creators of all kinds coupled with consumers of all kinds doing deals directly with each other in the marketplace through content and voting. I find it incredible that so many people are selling at these prices, I find it incredible that so many sell at all when later, they will not only be able to have curation revenue streams, they will be able to reward the content they like and keep it coming.

Owning Steem is a lifelong subscription. It is tiring hearing people complain about their post earnings when they also don't have the will to power up and reward other creators.

"You have to pay me for what I create, even though I don't give enough of a damn about what you create to pay you."

When you go into a restaurant, you expect to pay for what you eat. When you go into a shop, you expect to pay for what you take out of it.

Oh, you are one of those who does a runner and shoplifts?

On Steem, you don't have to even buy the value needed, you can earn it and right now is a good time to earn - it is always a good time to earn. However, in order to earn you have to be able to attract those who already have Steem and, that means delivering what the consumer wants.

If you own a store that stocks products that no one wants to buy - you are likely not going to last long. However, if living in a city full of stores that provide all kinds of things to a large community with a large range of preferences and the means and will to spend because they have an endless subscription to do so, all kinds of niches can be supported.

I can guarantee that the local McDonald's restaurant makes more money selling crap than the most expensive restaurant in the city but, they can both coexist and, they can both thrive. Do you tip at McDonald's if they give you good service - and they normally do because it is corporate policy? Those kids don't deserve it while they earn minimum wage?

Tipping culture is a funny business in the world but online and especially on Steem, it could be an absolute goldmine for creator, consumer and investor once people realize that rather than having all the middlemen to process and extract, we can build an economy of direct sales and not have to continually finance it by using more money - No more demand for centralized currencies.

As I have said before about Steem as a subscription model, Steem Power is yours, it is access to all parts of the community and it is also the way you as a user can add value to the other users you enjoy. It doesn't matter if Steem is 1 cent or 100 dollars, when someone provides value to you whether through the content they produce or the vote they place - it is something special - be grateful for it.

If you like the feel of the tip,
why not go a little deeper so others can feel it too?

Taraz
[ a Steem original ]

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Taraz Taraz Taraz... Long good read, but the logic is there to support just letting people only be tippers. Read and tip and that's it. I think the content authors would do better at their craft. The value of the creative content would go up... More engagement as well!

As a content author on the biggest crypto blogging platform in the world, that's all they need right now in my opinion. The tipping model is worth looking at for STEEM because the reward pool is used to provide the tip for the readers. Once they tip the author they are put on a 24 hour timer... However they are allowed to tip other authors that create content! The minimum tip is 20% and the maximum is 100%! That means the reader and tipper would be able to keep 80% of the tip provided from the reward pool. Further, the reader and tipper would at the most have only 6 read and tips per day! ...I guess by now you can imagine why I refer to them as RATs ~ READERS-AND-TIPPERS!

Just the other day the biggest crypto powered platform in the world announced a new tipping model which allows advertisers to contribute cryptocurrency, e.g., Steem or one of the other cryptocurrencies created by STEEM-ENGINE. After the reader tips, a link that tells the reader more about the advertiser that supplied the crypto for tipping would take the reader to a project blog post for the reader to continue READING AND TIPPING, e.g., a blog post about about "the glass of whine!"...

Anyhow, your analogy from the perspective of a Steemian blockchain investor makes a lot of sense especially now with the new crypto the Tribes are supplying the blockchain! It will take a little more time because we just shifted to life-speed, but when it hits year 5 of banking 100% STEEM POWER and STAKING all the other Tribes supplying token... woo woo woo woo woo... woo woo woo woo woo... Is all I'm saying relevant to your article!

It is going to be an interesting ride for sure but what I like the most about Steem is that it encourages ownership, and that ownership is what allows others to interact and get encouraged for ownership too. The model changes the paradigm of what is creation, consumption and the market between - and paradigm shifts take time to happen.

Is that guy that was upvoting you on titles going to do likewise for your closing lines? 🤣

I’m dropping my usual apology for glazing over the numbers again, think I got the gist from context maybe 🙃

Vaguely related (only because I saw something about vote spreading) my vp seems to be taking a ridiculously long time to recharge 😖 (it’s mostly because I keep bumping it to try for min 1c votes BUT STILL)

Posted using Partiko iOS

Is that guy that was upvoting you on titles going to do likewise for your closing lines?

@abh12345?

Vaguely related (only because I saw something about vote spreading) my vp seems to be taking a ridiculously long time to recharge 😖 (it’s mostly because I keep bumping it to try for min 1c votes BUT STILL)

Yep, it is a problem with falling prices, for now, avoid comment votes and instead reward posts as they are more likely to get over the dust threshold.

Yes? :P

If i'd not read through the middle I'd have missed the violinists, and that would have been a shame.

I guess tipping on Steem has been around a while, even though not native to most of the main interfaces. I've seen a lot of wallet sends and some folks have their wallet addresses listed, although tough to assess if they have been tipped in this way.

Could we get to a point where most rewards come from tips and not the inflation pool? hmm

I think the inflation pools can be the tip pool too, at least from a narrative standpoint. Those that buy in early can tip more than those who wait.

Is that guy that was upvoting you on titles going to do likewise for your closing lines?

It might have been @fknmayhem too :D

Most likely not.

Is that guy that was upvoting you on titles going to do likewise for your closing lines?

I mean, at least not until @tarazkp provides a TL;DR. Even if the TL;DR's at the end... works for me. One can only read that many War & Peace tomes every day. :D

Somebody already make an interface with something like this. Or stick it in eSteem/Fartiko and give more tokens to those who read everything.

The TL:DR at the end are weird. Perhaps it is a recap of the last episode.

One can only read that many War & Peace tomes every day. :D

I have been absent the last few days so I have to make up for it.

Hello!

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The problem as I see it is that people who don't like to go a little deeper so that others can also be rewarded simply don't trust Steem to succeed long term. Yet they all want a piece of the pie. They think, "let some other person put their money on the line. If this thing fails, all I have lost will be just my time." The recent post by @nonameslefttouse provides a good message about Steem to outsiders which is completely different from the usual, "get paid to post".

Yet they all want a piece of the pie

This is the case a lot of the time where people want something for nothing without remembering, there is always a cost somewhere.

The recent post by @nonameslefttouse provides a good message about Steem to outsiders which is completely different from the usual, "get paid to post".

Yep. I am hoping that some of these get traction. Over the years I have felt that there have been turning points only to discover that culture is strong. While people don't like having the "code is law" rule, change in code does tend to force reflection of behavior at the very least.

My ears are ringing!

I actually wrote up some honest advertising today. It's a bit of a rehash from something I did way back in early 2017. I've been on the same path for a very long time.

About the post here. I've been meaning to come back to mention how it's crazy that math can change so much from one week to the next. Someone could read all this a year from now and none of that math will add up! The basic principles remain though.

I've been on the same path for a very long time.

I know the feeling.

Someone could read all this a year from now and none of that math will add up! The basic principles remain though.

Yep, it will change incredibly and that is a good thing, it has to change in order to live. Basic principles is like common sense; most people don't have or understand them.

Common sense. I stumbled into some strange thoughts that day as I wandered through my mind. I don't know why I do those rambling posts. I think if I cleaned those thoughts up, I'd probably extend my reach. Blah fuck it, I'm rambling again.

We can see though, how the basics are setup in a way to lead to success. It'll take a little more patience though.

We can see though, how the basics are setup in a way to lead to success. It'll take a little more patience though.

Someone asked me what was the point of them being here as they feel they don't add to the platform as all they do is create content - ummm.. that is the point. create, consume, converse.

So many distractions out there. Easy roads that lead nowhere.

Hello @tarazkp is true community grows with every vote we make, no matter its value but the amount we make daily...

The amount is one thing, the quality of comments, the energy in, the ability how to change the way a person feels. there are many ways here.

Amazing how quickly the maths gets out of hand.

It gets silly very fast and the sillier it gets, the more it can support.

A very nice writeup. My only growing doubt is if Steem will really be there in 5-10 years, or for a lifelong subscription. If prices stay down or fall more, Stinc will be in a real operational pickle, and many independent devs/stakeholders will not find it economically viable to build here, thus driving a large portion of the users/content creators away, leaving the blockchain buried in ashes.

On the other hand, Steem could be revived so that this lifetime subscription principle could be wonderful for those who stuck it out or invest later. Not to be a downer, but this likelihood seems to be shrinking and becoming less realistic, even from my pro-crypto/Steem position.

Agnostic of price, I'm just not seeing mass adoption upticking/happening anytime soon, where the lovely math above would be applicable.

and many independent devs/stakeholders will not find it economically viable to build here,

One thing that the devs will eventually understand I hope is that, Steem is the way to attract customers and users, not for them to earn off. Like any business, they need to create a business model that people want to use.

Not to be a downer, but this likelihood seems to be shrinking and becoming less realistic, even from my pro-crypto/Steem position.

I disagree. This is just the start of an industry - but people think it is too late.

Agree on 1. On 2, it's certainly the start of an industry, but I think Steem has more than lost its first-mover advantage, and is at high risk of being surpassed in this space. There's plenty of time for the landscape to play out, but it just feels like Steem could be left in the dust in that respect. There are a lot of high hopes here as early adopters, but I'm not seeing millions of users in the near future to revitalize this place. I hope that's not the case, it's just my gut feel after observing closely for ~2 years.

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