STEEM: The System Is Truly Working: Massive Redistribution Of Power Taking Place To The Smaller AccountssteemCreated with Sketch.

in busy •  2 months ago

Sometimes, it is best to step back to get an idea of what is going on. It is easy to get lost in the day to day events on STEEM without seeing the bigger picture. When we do this, we often see that things we are focusing upon are not as paramount as we believe.

I joined STEEM in August of last year. Since that time we witnessed a fair bit of growth in spite of a sign up process that is slow. My account number is roughly 318,000; we are now at or near 1.1M, Many of us believe that once HF20 goes into effect, we will see this number start to accelerate even higher.

A big deal is made about the distribution of the token and how the power is in the hands of a few. This is certainly true since we still have a lot of SP in a small number of accounts. Yet this is where people need contrast. Many feel that without pro-active moves, we are only seeing the "rich get richer". While this is true in the fiat world since that system is devised to operate like that, we are seeing it less so on STEEM.

Let us take a look at where things stood 13 months ago.

mvest812017.png

Total MVest 336,932

Here is the percentage of the total SP holdings at that time:

Whales 75.4%
Orcas 14.9%
Dolphins 7.2%
Minnows 2.14%
Red Fish .01%
Inactive .4%

The most noticeable thing is that the Whales had more than 75% of the SP and the Whales/Orcas had over 91%.

Next we have the account breakdown on that same date.

account812017.png

There were 289,004 accounts with only 6,318 having more than roughly 500 SP or greater.

Let us contrast that with how things were as of the end of August 2018, 13 months later.

image.png

Total MVests 395,377

Whales 59.90%
Orcas 18.21%
Dolphins 12.05%
Minnows 6.40%
Red Fish 1.25%
Inactive 2.19%

During that time, the MVests went up about 60K while the Whales total went down 20K. That means that the power went down in absolute terms in addition to a percentage basis.

Please note that SP provides influence on the STEEM blockchain. Powering down means one gives up that influence.

The other change we see is their influence went from over 75% to 59%. This is a rather big shift in a little over a year especially when we know there is a slow sign up process.

Now for the account breakdown.

image.png

There are now about 1.12M accounts with 10,784 having more than the approximate 500 SP level.

Changes by percentage (By SP then by Accounts)

Whales -20.58% -14.29%
Orcas +22.21% +25.66%
Dolphins +67.36% +52.65%
Minnows +199.06% +77.62
Red Fish +22800% +174.95%
Inactive +447.50% +321.11%

This provides some real interesting data.

To start, the Whales not only got less powerful, there are fewer of them. That is the only category that shrunk.

The other thing that pops out is that the growth of the Orcas SP trailed their account growth. This is the only category that experienced this. The other 4 categories had a growth rate in SP that EXCEEDED their account rate. This means that not only were more accounts participating, each account has statistically more SP than 13 months ago.

We might want to overlook the growth of the SP rate in the Red Fish category since I have a feeling the SP read on that date had to be a mistake.

The other day I posted how the STEEM blockchain is changing and the fact that many larger accounts are delegating SP to applications that are upvoting content creation from smaller accounts on their platform. This, in turn, is actually fulfilling the idea that many had to start: that smaller accounts are rewarded for their content by larger accounts.

https://busy.org/@taskmaster4450/why-applications-like-tribesteemup-are-fixing-steem-problems

My view is this will move these numbers even further along in terms of the distribution as we proceed forward. Not long after I joined, I realized that the answer to this entire situation is more people. These numbers bear that out. For all the complaints about the rich getting richer and the Whales only doing things that serve them, the fact is the system is working the exact opposite. More power, today, is in the hands of the smaller accounts as compared to where were were 13 months ago.

The simple fact is that as more people join, get active, and start amassing rewards of any size, their accounts grow. When it comes to the structure of the reward pool, since 75% is given to authors, this means that the larger accounts cannot post at a rate that keeps pace. Again, the growth of the SP exceeding the account number growth exemplifies this.

In closing, I just want to say the smaller accounts, contrary to what many believe, are making more money on the STEEM blockchain and they are being rewarded at a rate HIGHER than the larger accounts.

We are seeing a redistribution of power occurring right before our eyes.

Personally, there are some issues that we need to deal with on the STEEM blockchain but worrying about the power distribution is not one of them.

As I post each month, the system is working.

I want to thank @arcange for the data provided and the charts used.


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A fantastic article. You cant deny the FACTS and you made great points utilizing these facts.

Really interesting analysis. As my wife the accountant says: “the numbers don’t lie”. It’s good to see that the system is working on the macro scale.

Posted using Partiko iOS

I really thought there were more whales than that!

And wow they hold 3/4's of the SP... and little ol me has a goal of 10,000SP lol
if every whale voted for me a few times a day id hit my goal in like a week lol

Thanks for the breakdown in numbers. I am close now to breaking 500SP and notice that they more I have the more I get. It is a waiting game that speeds up with time and connections. I must admit to being enamored with this gifting economy, and think as more can really see it for what it is that it will explode in use.

Amazing analysis with very insightful data. Though it is worth noticing that before HF20 anyone (including whales) can create accounts almost for free.

So we have to remember that this analysis is actually about the distribution of wealth among steem accounts. Not individuals.

It would be much more insightful if we had a metric such as unique person for this type of analysis.

This post is supported by $1.23 @tipU upvote funded by @cardboard :)
@tipU voting service guide | STEEM Monsters Lottery | For investors.

That's great to see these numbers are shifting away from the top. Thank you for the analysis. :)

I didn’t know this data. Thank you.

Posted using Partiko iOS

Hi - looks like a very encouraging trend! Nice succinct analysis.

Looks like we've got an emerging middle class!

Posted using Partiko Android

Thanks for the analisys. I was looking at the steemwhales web for info about steem wealth diatribution, but this are a lot more informative graphs.

Great analysis, didnt know that the distribution model goes in the right direction:) tipuvote! 1

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This is a very informative post, Thanks for the detailed analysis. 👍

Posted using Partiko iOS

There is a noticeable difference from a year ago. I investigated this as part of my oligopsony post 'Is Steem an Oligopsony for content creators'. This dilution of power is essential for the growth of the platform.

Delegating to bid-bots (vote selling) instead of manual curators is slowing this process down.

·

Yes its true !!

Posted using Partiko Android

Hi @taskmaster4450!

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Wow!! Lol hehe

hi @taskmaster4450. I think your graphs show what everyone had hoped for. It is good news and I am keen to fast forward to next year and see how it has changed over that time. There is definitely a middle class happening which is a healthy community.

well I must admit my account has grown far above my expectation. I earned more than 30steem in two month, and I hope to grow even more....

Facts speaks by itself. Perception is difficult to go around, only facts can help. Thks for bringing this up. It's the power of Blockchain when people have access to data and can provide facts. Challenges are there but the fundamentals are good.

I have just never worried about this. I feel like most people spend too much time worrying about who has more than them instead of just doing the work and getting their own fair share.

I realize that the point of your post is to assure people that steem does get redistributed and that they needn't worry.

Hopefully, people will listen, and then get to work.

Certainly seems like a very positive development for the community.

However, to play devil's advocate for a second: What would these graphs look like if, hypothetically, a few whales cashed out over the past year? Your data shows a decline in both relative and absolute terms. So where did the decline originate? Did some whales not see enough of a future for the platform? Or a diminishing return for their role on the platform?

How would you distinguish between the two?

Appreciate you breaking down the numbers like this!

Most of the time, when I encounter a "whiny critic" of the system, I have pointed out that every 10SP I power up my small account is 10SP NOT in a "whale pocket." It's gratifying to see that idea backed by real numbers here!

=^..^=