RE: Forum steem

We earn interest on the SP we vest? I absolutely never knew that... Though, at only 1.8%, I can see why I didn't know that. That's worse than my savings account at my bank earns. While I am ok with a slight drop in author rewards, going from 75% to 50% is just not acceptable. That would put the author in a position where Steem would be the worst earning platform they could publish on. Apple is 70/30 and Amazon is... 80/20 (I think?). Now granted, I understand there is a very obvious difference between these platforms, but the point still stands. The principle behind this is bad, and the optics far worse.

$0.35

ajayyy (65) 6 years ago

User @thecryptodrive wrote at 19.06.2019 05:33:09 UTC:

7% might be a more prudent starting point

Even 7% is very high, something like 3% or 4% would be more resonable in my opinion.

$0.08

ajayyy (65) 6 years ago

A few people on another post have liked this idea:

Why not take from witness rewards and make the remaining witness rewards a proposal in the SPS system?

$0.08

onthewayout (59) 6 years ago

User @thecryptodrive wrote at 19.06.2019 22:06:38 UTC:

@southernwolf, we are discussing that now, although the discussion is going in the direction of removing the SP interest altogether.

As a steem stake holder I second the proposal to remove the SP interest and allocating 2/3 of it to the SPS. I am not in favor of cutting the portion that is set aside for witness pay. Block producers are the last line of defence when it comes to perserving the integrity of the blockchain and we need as many backup witnesses as possible.

My prefered distribution is:

With this setup there is an additional incentive to hold steem power that has some game theory advantages. Over time it would diminish the influence of actors that are just here to extract value.

$0.05

thecryptodrive (70) 6 years ago

This is probaly a good reason not to reduce staking interest, the external media already sees us as the lowest POS/DPOS interest currency: https://neosteem.com/topics/thecryptodrive/tokenbb-topic-steem-compared-to-tezos-on-staki-1561429261165

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southernwolf (53) 6 years ago

Ok, so here's my suggestion! Remove interest earning on SP, and use that to fund thinks like the SPS? Cause, I doubt anyone (except a few whales and witnesses) would miss that. That would leave author rewards untouched while still freeing up some funding. Then, if funding the SPS initially is successful using that, then the amount it is funded with could be increased by reducing the other sections. That way, it's a gradual shift, which allows the waters to be tested before we dive right in...

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thecryptodrive (70) 6 years ago

@onthewayout thanks for the feedback, I will convey that internally.

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9 votes

thecryptodrive (70) 6 years ago

Personally I would drop 1% from witness as well in a show of solidarity.

I would also reduce interest by 1%, both of these reductions will make content rewards 69.5% and leave SPS at 9% until it has proven itself more.

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10 votes

thecryptodrive (70) 6 years ago

Regarding the proposed funding split of 65, 15, 10, 10, I would like to appeal to witnesses to reconsider this. firstly 10% to SPS is a bit high especially with all the talk around how it can be gamed, hence the 10 SBD submission fee etc. It is largely unproven so 7% might be a more prudent starting point, also @trafalgar and I really feel vesting interest should be reduced, and he asked who is fighting to keep that intact anyway? As I have said before, no external parties even know about it, even the latest indepth article about Steem on bravenewcoin.com didn't even mention vesting interest, the UI doesn't show it either so not sure what the point of it is from an investor attraction standpoint, there are always other delegation tools and markets that can earn you far in excess of 1.8% pa anyway.

I also think 1% reduction from the witnesses is a good PR move in solidarity with the community.

$0.00

10 votes

thecryptodrive (70) 6 years ago

@southernwolf, yip supports my case exactly no one knows. Steemit Inc with their 60 mil Steem earn around 1 mill SP per year on 1.8% and dump at a rate of 800K per month :) they however they have been nice enough to suggest a drop to in SP interest, some other witnesses are fighting not to touch SP interest and reckon the rewards are the part that are being milked and should be reduced.