RC Delegation Will Change The Path Of SteemsteemCreated with Sketch.

in busy •  20 days ago 

Steemit Inc put out a post yesterday regarding the coding for the next Hard Fork (I guess this would be 22). The big piece of that update is going to be SMTs. There is, however, another piece which could really change the path of Steem.

One of the biggest issues with the on-boarding process is enabling new users to be active. Even if we get them signed up with an account, the amount of Resource Credits they have is minimal. For those unaware, all activity is accounted for in Resource Credits. These are acquired by powering up STEEM. The more Steem Power one has, the more he or she can do on the blockchain.

Steemit Inc tries to alleviate this by delegating 15 SP to each new account. Other applications also got on board with doing something similar. @actifit delegates 10 SP to each new account signed up through its website. The term is one month when, then delegation is taken back.

While these initiatives are noble, they do have a downside, especially in the case of an app like Actifit. By delegating SP, it is now taken from their voting pool. This is something that is used to reward its users for are active on that platform. If the app ever took off, 10 SP going to a few thousand users would put a dent in their total SP, meaning the upvotes would be worth a lot less.


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The solution to this is separating the Resource Credits from the Steem Power. This would enable anyone to delegate Resource Credits while holding onto the SP.

Let us use an example.

In this instance, I sign up a friend of mine. Since I have more RCs than I use in a day, I can allocate an acceptable amount to that individual enabling him or her to operate without limit (within reason) on the Steem blockchain. That individual would not have any SP so the upvote would still be nil. However, the ability to interact would be there.

This would also apply to any application. Signing up through that app could entail receiving some RC while holding back the SP. An application could use that to keep STEEM spigot open while expanding the user base.

Of course, all this opens up the idea of a Resource Credit pool. Here we see added incentive for people to power up STEEM.

By having a pool, RCs become an asset that can be traded. People can then offer the RCs out to applications (businesses) in exchange for some type of payout. This could have a tremendous impact on the desire for the token.

When businesses have a need for the Resource Credits, they will have no choice but to buy STEEM and power it up. That said, it might not be feasible for all projects to make that financial outlay, especially as a start up. Predicting one's growth rate is very difficult meaning that one could be hesitant to make such a large financial commitment.

Here is where investors enter the picture. There could be a number of people who see the value in this system and pick up STEEM with the intention of making the Resource Credits available to those businesses that need it. Since I believe many people are going to start finding their way to Steem via the applications, this opens up a new opportunity for those looking to fill that need.

Thus, we see a couple problems possibly solved. Users will have the resources to operate on the Steem blockchain within reason. The idea of someone signing up and being limited to one transaction a day will be reduced. Applications, obviously, want active users so they have incentive to get people the resources they need.

At the same time, this could create buying pressure on STEEM. Knowing there is another avenue of use for the token, it could make those who identify the potential ready to buy in force. There will be a built in need if some of the Steem applications become popular.

People, of late, are talking about "sinks" on here. With Resource Credits, we see a digital asset that has a single use sink but it is a big one. Enabling users to operate on the Steem blockchain is the only use (that I presently see) for Resource Credits. However, if the user base grows to 500K daily active users, there will be great demand. Over time, this should only increase as the pace of use accelerates.

The potential for something like this can radically alter the path that we are presently on. It will provide the applications with the resources they need to onboard users who are active. This will only enhance the entire ecosystem as the "snowball" effect takes place.

One of the biggest benefits to Steem is the idea that the same username accesses all Steem-based applications. How many users will find their way here via a single application only to realize there is a lot more available to them? A certain percentage will opt to get involved with other applications, increasing the total usage.

Ensuring they have the resources available to interact is paramount. Obviously, it is in our best interest to provide the resources for those who want to be most active while minimizing what is in the hands of those who are not.

A pool for resource credits could do just that. Applications will have access to what they need while also having the ability to monitor their users. If one does not use the RCs allocated, they can be revoked and applied to someone who is more active.

This will certainly make things very interesting in 2020.


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One transaction per day?
If it is really that bad, then why does anybody wonder why people leave?
SERIOUSLY WTF? Every new guy needs at least 15-20 transaction per day or they will leave. I would leave. This absolutely ridiculous.

I believe 15SP allows you to leave 17 comments... or one post and far less comments, because a post takes up more RC.

Many leave, indeed. I'd say the bigger part. I would too...

I really support all this and I understand it as well but if steem sinks further and further down the charts we will become less attractive for investors. And possibly for new apps as well. We are seemingly just hyping everything internally and I guess not enough is going outside. That is my fear for now

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Really a pity to see this drainage continuously going on...

Patience Felander... it can't drop below zero! And from zero on it's only possible to go up!

The only reason I'm able to do the little bit I do is because my hubby @wdougwatson delegated me 50 steem. Im slowly building up my own but you're correct about the limitations to new users.
I'm saving to start my son a steem acct.. Maybe when he gets started it'll be A bit more user friendly for him🙂

Posted using Partiko Android

Forget Social Media. Each day, more and more, the steem network is becoming THE financial blockchain institution.

Well I wouldn't go as far as that.... EOS and Ethereum exist.

Buying Steem at current prices will either be a steal or a curse...however I bet the latter due to all the projects taking place in recent months.

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We can only speculate what kind of income stream RC leasing might yield. Almost certainly less than leasing out SP, but other than that, it would be hard to guesstimate.

And there's tons of unused RC sitting in our accounts.

I do tend to use mine, by claiming account tickets which might come in handy some day. Granted, using RC’s that way might not make as much sense after RC leasing comes into play. But most minnows don’t really have ticket claiming as an option so are routinely wasting RC’s.

Ow? Do explain the tickets to me, I've seem to fall out of date on that.

I think you might not have quite enough SP but it’s worth a try.

There are probably several ways to do it, but I use SteemWorld. Go to your page there:
https://steemworld.org/@spiritualmax

Near the bottom of the page, go to claim a ticket. You can enter your active key directly or through SteemConnect. If it works, a few seconds later your ticket will have been added a little further down the page. If it doesn’t work, you will get an error message saying how many RC’s you need to claim.

Ok, didn't know that, thanks wombat!

you need about 4k steem to claim a ticket (roughly)

I rarely use all my rc, I'd be happy to delegate a bunch of it out for liquid Steem or SBD. Or even a custom token, if it's responsibly managed!

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I definitely like the idea.
As for now, i'm delegating small chunks of SP to a number of users, because the RC system is a huge turn-off. Delegating a little bit of SP gives them some breathing space. But I had to lower the SP i delegate to each user in order to be able to help out more people, and don't give away all my SP. (I must admit I've put new delegations on hold for now - I can't foresee what will be workable for the smaller accounts after HF21)

I have plenty of RC to spare, so it would be great if I could delegate that.

Steemit Inc tries to alleviate this by delegating 15 SP to each new account.

Do they? I see a lot of users with only 5SP...

RC delegation should've been prioritized. I don't know why they didn't think about smaller account barely having any RC.


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I do know: because they simply don't care. They only care about the big investors - and those have no RC trouble. :0(

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Hi @taskmaster4450

Interesting read. I've been just wondering: wouldn't it be easier to change RC algorythm and make it more suitable for new users? That sound like the easiest and most straight forward solution.

Just wondering. Upvote on the way.
Yours, Piotr

Witnesses have the ability to change how much things cost on the blockchain in terms of Resource Credits. I do not know the parameters they need to operate within.

However, there is no way getting around the fact that some SP (RC) is going to be required to interact on the blockchain. Even if it is more accommodating, there will still be a ton of SP required for a few million users.

Also, what it takes to make that change is beyond my knowledge level.

Hi @taskmaster4450

Thank you for your kind and prompt reply. Appreciate it a lot.

Yours, Piotr