Introducing the Steem Defender Bot. Designed to Protect Steem From Economic Collapse and Support Minnow Growth (Article)

Here in the Earth Nation, we really love the concept of Steem.

We perceive that Steem has a weakness that may dramatically effect the value of Steem on the open market and make Steem very difficult to sell.

Here’s an example;
A hedge-fund with access to billions of dollars purchases all of the Steem available on the open markets. That Hedge-Fund then places buy orders for Steem at a higher rate, temporarily artificially increasing the price of Steem to 7 dollars per. They then power up a network of like-bots to automatically engage with AI spun content to turn Steem into an automated ROI farm. They start dumping massive amounts of Steem on the market without increasing the demand for Steem or adding any value to the user/content base. Thus devaluing all of Steem.

For this example let’s assume the Hedge-Fund originally buys 100M Steem with 84M USD worth of Cryptocurrency. They then place another 50M into Buy Order for more Steem. When the Price of Steem goes from 0.84 to 7 dollars per Steem because of this move, that 100M worth of Steem is now worth 700M. The Hedge Fund then uses this 700M worth of Steem to POWER UP.

This Hedge Fund intelligently diversifies this Steem into thousands of different accounts to attempt to hide this move to monopolize Steem. The Fund then automates all of these profiles with AI automation and sets up a network of cross-liking and comment upvoting that hides itself from the rest of the Steem community by never upvoting posts enough to hit trending, while also never using any normal tags.

The Hedge-Fund then uses its 700M power to upvote exclusively their own posts and comment content. They start making 70,000 dollars worth of Steem every single day by doing this. 2.1M a month. 25.55M dollars a year.

Based on this example, it would only take a 150 million dollar initial investment to start producing almost 25 million dollars a year. What’s more, 50 million dollars of that initial investment would come back within a month after the hedge-fund drops the buy orders after powering up. That’s a 25% yearly interest bank-account.

We know of Hedge-Funds that are just waiting for the Steem User Base to grow larger so they can safely pull this move off and milk the Steem economy for as much as they can before the increased supply without an increase in demand crashes the price of Steem beneath 1 cent per making it almost impossible to sell.

Because of this Vulnerability we cannot yet bring Steemit to our Greater Network.

Our Solution to this problem is a new variable attached to all Steem accounts. For the purpose of this Example, Let’s call this Variable “Influence”. Every account starts with 100 Influence.

Accounts that consistently either like their own content, and/or continuously like the content of the same accounts, and/or continuously like the content of accounts that have been associated as “bots” will lose influence every week. Accounts that consistently like content from users they haven't liked before gain influence.

Accounts that have an influence score less than 100 have a penalty to their upvote power. At 0 influence a 70% penalty is applied.

Accounts that have an influence score more than 100 have an increase to their upvote power. At the 200 influence cap a 30% boost is applied.

To keep a 200 influence, accounts must engage with totally new users 10% of the time, and engage with users that they have not frequently engaged with 25% of the time.

For users that do not want to spend a lot of time finding new authors, we strongly recommend giving some of your weekly votes towards a curation service that will automatically use your votes to find new users with the best content.

This solution will not only dramatically reduce the ROI from Hedge-Funds seeking to monopolize steem to the point where it will collapse our economic system from flooding the market with steem without increasing the demand for steem…. This solution will also facilitate more support for new authors who are trying to be seen. Which is the other greatest problem Steem faces; It is very difficult to get started here making a noticeable income.

We realize that steemit-upvote bots pose a similar issue. Wherein an hedge fund can inflate the price of steem, use that to get a lot of power up, then delegate their vote to mercenary bots to get the same 25% yearly Interest. However…. This potential problem is much easier to solve, as it is very easy to track these mercenary bots and who is funding them. It is a simple thing to setup a bot swarm to automatically give a 30-50% penalty to these mercenary bots, which will dramatically reduce the ROI for investors to prevent pumping and dumping of Steem on the market.

Our Economic Team also strongly recommends that the Founders of Steem reserve at least 50M steem for the purpose of filling buy orders/placing sell orders at ranges between 2-10 dollars to prevent artificial inflation and manipulation of Steem Value.

We have 2 potential avenues to integrate these solutions into Steem.

1. Fork/Adjust the Steem Code.

2. Create a Data Service that automatically compiles all users influence and makes all Steem users influence rating and upvoting habits known to all other Steem users. Then create a swarm of bots that automatically penalize those with low influence while boosting those with high influence.

The Purpose of this Article is to determine whether Steemians support this Solution. If we find the Steem community to be in support we will create this data service and bot swarm software free of charge and Open-source. Alternatively we are open to helping fork the code to include this upgrade.

If you think we are somehow incorrect about our perspective or calculations, let us know. Please list sources from official steem sites to back up your perspective. If you have a better solution to this problem, please share it!

If you agree with our solutions, please show us your support!