RE: HF21 and the Steem Vision

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RE: HF21 and the Steem Vision

valued-customer in #hf21 • 6 years ago

The value of the time of whales is better spent on their business than fine-tuning their rewards. All they have to do under this - or any tweak to rewards along these lines - is delegate to a bot and exert 0 effort to fine tune their profiteering to extract almost all of the rewards from the pool.

The bidbot owners take care of everything for them. All they have to do is sell their profits on the market, and continue to crash the price of Steem.

That's what will continue to happen, only it will happen faster with a modified exponential rewards curve, and doubling curation rewards. EIP is the last rush to extract the value left in Steem which there is presently a race to sell before the price crashes. Then the profiteers will move on to the next target.

That's what profiteers do.

6 years ago in #hf21 by valued-customer

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eonwarped 6 years ago

They can, but they still lose compared to now with the new rules. There's a lot of shifting that will happen especially with 50/50 and dealing with the leakage to external curation votes, and incentives to move away from bid bots, and the potential downvotes is even more motivation. Yes, they'll do their best, but they are actually being penalized compared to now.

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valued-customer 6 years ago

They're going to get ~40% more of the remaining rewards they don't already extract before it increases the value of Steem. Almost all rewards now go to whales, with creators splitting less than 10%. Double curation rewards, and create a modified exponential rewards curve, then add a tax on rewards on creators, and, oh, hey, let's give flaggots free downvotes too.

The downvote pool doesn't acknowledge that what keeps most folks from flagging isn't VP cost. It's retaliation. Small stakeholders can be crushed by flaggots, and i've seen it happen more than once. Bernie will get more flags for free though.

None of that addresses the fact that investors are encouraged by potential capital gains, and with almost all the rewards being extracted by whales before the value can increase the price of Steem, there is no reasonable basis to expect capital gains. Hedge funds aren't in the business of self voting, or delegating to bidbots for their returns. They seek capital gains, and Steem can't give them any as configured, and EIP is making that worse.

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eonwarped 6 years ago

And how do you imagine they will be getting 40% more? These principles already take into account maximizing behaviors. Unless you tell me the top X whales all agree to indiscriminately downvote everyone else, which I highly doubt. If you are a whale, and are just playing maximization, your incentive is to downvote other highly valued posts, presumably made by another whale, rather than small fish.

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