Why Do People Think That Steem's Distribution Is Unique?steemCreated with Sketch.

in distribution •  3 months ago 


This is a legitimate question. For the past 18 months, I have gone back and forth with many people complaining about how the distribution of Steem is. They believe that it is somehow unfair that some people have a lot of SP while others have so little.

What is most fascinating is that these same people launch attacks against Steem while justifying it by pointing to other blockchains. In fact, one who is launching missiles at Steem is really guilty of it.

There was an article posted the other day that stated the Weiss group was downgrading EOS. The reason? It is too centralized.


Isn't this a kick in the pants?

For all the heat that Steem takes for Steemit Inc having too much control and the token distribution in the hands of too few, EOS is far worse. Many will remember when it was released a year ago, the top 10 wallets accounted for almost 50% of the tokens.

Over the past year, I took a look at Ethereum, Bitcoin, and Litecoin and reached the same conclusion. In those ecosystems, the top few wallets own the vast majority of the tokens.

Thus, it is time to admit that what we see on Steem is not unique. In the early stages, token distribution is overwhelmingly in the hands of a few. The question is what happens as time passes.

What is interesting is that Steem goes counter to what is taking place in Bitcoin. It is being reported that the top Bitcoin wallets added to their holdings when the price dropped. Hence we see a situation where the bear actually made the larger accounts more powerful.

On Steem, it is the exact opposite. The bear market enabled smaller accounts to add to their holdings. Steem offers something different in the sense that one's holdings offer more opportunities than just a speculative investment. Holding more SP enhances the stake in the blockchain, enabling one to earn more.

At the same time, the inflation rate is spread out in part, to authors and curators. This is something that helps with the distribution. We know that about half the top accounts are not active on a daily basis. They are not sharing in the daily reward pool payout.

There is more SP held in by Orcas, Dolphins, and Minnows today than there was a year ago. We also see more of those accounts in each category. If we see the present trend continue, which there is no reason why it should not, a year from now, we will see more people in each category, collectively holding more SP. Each day. roughly 50K accounts are transacting. Since there are only 35 Whales, that means a lot of activity is taking place outside that category.

Certainly, we know there are duplicate accounts on Steem. Again, the problem with pointing this out is that people often make it out to be unique. With EOS, who owns those top 10 wallets? Who are the Bitcoin Whales who keep growing? We know a few of the biggest ones but outside that, who owns the other 50 largest wallets? Are they the same people?

Steem is far from an ideal system. Certainly there are problems. Yet we do not see Steem being downgraded because it is too centralized. In fact, with the addition of MIRA about to take effect, we see Steem potentially moving in the other direction where the cost reduction makes Steem less centralized.

There are a number of accounts I interacted with over the past year and a half which provided me the opportunity to watch them grow. I will give you an example.

Towards the end of 2017, I started the 1KSP program in which certain people "sponsored" a smaller account that was highly active on the blockchain. The goal was to commit to upvoting that person's content, once a day at 100%, until that person reached 1,000 SP. In one of the rounds, I selected @mariannewest to sponsor. It took a while, but we got her account to the 1K level. She was a decent sized Minnow at that point.

Today, look at her now.


She is an active Dolphin with almost 6K SP. Her activity on here remains high with the different projects she is involved in. This is an account that had very little in it 18 months ago yet is one of the 2,000 largest today.

So while the distribution breakdown is not unique, the ability for people to come on here and grow their accounts through effort is. While it is not easy, it can be done. It takes time, consistency, and effort.

It is easy to look at how things are today and conclude that is where they will always be. The truth is the trend has been going in a positive direction for a while. Again, we are much better off today than we were a year ago. Based upon what is happening, it is safe to say the trend will continue, presenting us a much different picture a year from now.

At that time, we might see 2,500 Dolphins and 13,000 Minnows.

It is the direction the trend is going.

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  ·  3 months ago (edited)

The problem is not a few dudes getting rich here.

The problem is that new users have a bad experience and therefore there is no stickiness and no growth.

Steem has not gained any users, even though thousands sign up every months. this is because we lose as many users as we gain. I have seen many key users leave, I see few reasons to stick around.

That said I myself am still here (so I must get some use out of it).

Personally i believe the issues is the distribution of SP. You may think the reasons are different, but the fact seems that whatever is going on right it is not working.

You can sign up 1m new users, but they won't have any SP and thus won't like it here and leave. They believe it is unfair because they see all these guys with lots of SP having all the benefits and they have none.

Either the token distribution must change to something that actually creates adoption and not hinders it or some other functionality must be created that gives users a way to come and stick around like other social media apps are doing.

Neither of these two options are being worked on and thus i think there is little hope for this place.

Nobody is responsible for this work or motivated to solve this problem. That to me is the issue.


Better the uncomfortable truth than a comfortable illusion, imo.

I'm hoping the sps funds something that helps.
I'd like my ride to the moon, at some point.
We were promised a ride to the moon, yes?

You've got DRAMA. You are going to be a Whale!

To view or trade DRAMA go to steem-engine.com.

What are your thoughts on Palnet?

What is Palnet ?

https://palnet.io/@knircky the website where you have an account and money but you didnt realize

Check out https://steempeak.com/palnet/@taskmaster4450/this-week-s-big-news-palenet-and-all-it-does-for-steem

Lots of other posts about it. There is also a claim drop if your holding some steem but its capped.

This place is going to die as soon as Voice is launched.

Posted using Partiko Android

Everyone bitches about lots of stuff, not just crypto. I BOUGHT MOST OF MY STEEM with money I worked for. I invested in this blockchain and powered it ALL up for over two years. (watched it erode away in value and still never powered it down to sell) Somehow people get pissed at me because i make a fair amt of STEEM per day fairly easy now but nobody wants to remember the investment i made and the new BMW I didn't get to buy because of it. I deserve to make a return on my investment by any means possible because this blockchain needs 1000's more people just like me to keep the coins off the exchanges and the prices higher for everyone by keeping coins powered up. I have invested HEAVY into several projects on this blockchain including drugwars, steemmonsters, moonsteem,kryptogamers, magic dice, epic dice, Steem Hunt, d.like, d.tube and several others. It's easy to bitch when you cant earn a lot of steem but on the other hand don't have any balls to invest into the future of social media. (even 20 bucks) I however......have balls the size of church bells!

I hear you, man.
Same here.

Things are looking good on steem in terms of tech and distribution. However, i think people are upset with the price. Products with the best tech and fundamentals dont necessarily become successful.

Posted using Partiko Android

The problem is that my bitcoin is still my bitcoin no matter who else owns it.

Due to DPOS those who hold more stake than I do - get to allocate the new stake. Right now they are seeing that newly generated stake as their Roi. That means if I earn, they devalue my earnings, if I buy they devalue my purchase. They have no idea how to build this thing and no interest in getting help. They just want to stack coins and that's a problem

Yeah stacking my tangible silver is easier to do than buy a devalued steem.

Posted using Partiko Android

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Your post brings up a couple of thoughts.

The first relates to having multiple accounts. I see this as similar to somebody owning a business. Legally, a business is its own separate entity. The legal fiction is created for liability purposes. On Steem, I do not know how well this works. However, if one wanted to sell one’s intellectual property for a posts about Root Beer Smoothies, blockchain makes the posts inextricable from the main account. Whereas a separate, dedicated channel could be sold off. It makes sense to do separate concepts on separate accounts.

My other thought is about distribution. One reason countries left the gold standard for money, introducing silver, and finally fiat, is that the wealthy ultimately wound up owning most of the gold via bank reserve requirements. If you wanted to pay your mortgage and had earned enough, you couldn’t because there wasn’t enough money to use to make the payment. With fractional reserve, the money supply could vary without being required to have gold or silver back it up. On Steem, we avoid the trap somewhat by introducing inflation. It prevents the whales from locking up all the money supply, which in this case is Steem. We are able to create value out of thin air and translate that into something we can trade or accumulate. We are able to do this no matter how much a Whale has in reserves. In other words, our ability to earn is very unique to our own efforts. What a Whale is able to earn has no effect on our own earnings. When we bring up such matters, it is purely out of envy.

In fact, we are fortunate that whales have been somewhat dormant.

I have to wonder what would happen when we reach a level of 50% whales? What would the economics look like then? 75% whales? Eventually the growing Steem middle class will become the Steem upper class. Will we hear the same complaints? There will be more people able to greet newcomers handsomely.

I can’t help but think that the solution to disparity is already in the works. We just have to wait for it to grow.

Posted using Partiko iOS

Thought-provoking article. I have only been on here a few days but agree that the key is to be consistent in providing quality posts.

I think the problem is that the special sponsoring you did for one author, should be the way this ecosystem works normally, every day; Good content and creators gaining upvotes by people, orcas and whales, only because these people want to see more of their content and to have them here in Steem, rooted and with more power.

Every day this isn't happening, is a danger to the existence of this whole platform because some other platform can come up with a ways to get the behavior model right.

But as you said, the trend is right, even if the change is happening very slowly. I just hope whales would take their role a bit more seriously. They have incredible amount of power here after all.

Now that we're seeing Steem Engine tokens and small communities with their own tokens pop up, we might actually start to see this kind of thing happening more and more. Real, genuine communities around topics other than Steem. What a incredible valuable ecosystem would this be if we can get it working right!

There was an article posted the other day that stated the Weiss group was downgrading EOS.

Between poor distribution and heavy handed governance, EOS seems like a ticking time bomb to me.

And don't forget about the chain size that grows very quickly!

You just planted 0.10 tree(s)!

Thanks to @fuadsm

We have planted already
8178.02 trees
out of 1,000,000

Let's save and restore Abongphen Highland Forest
in Cameroonian village Kedjom-Keku!
Plant trees with @treeplanter and get paid for it!
My Steem Power = 21351.92
Thanks a lot!
@martin.mikes coordinator of @kedjom-keku


Me, too.

Here's your DRAMA. Don't spend it all in one place!

To view or trade DRAMA go to steem-engine.com.

You're absolutely right - we do appear to be trending towards equality of distribution.

I think maybe people crticise Steem because the inequality (even though it might be less than with other currencies) is more visible - as in there are quite a few ways to view it!

And now tokenecomic is taken place with Palnet!

Posted using Partiko Android

When I initially glanced at the title of this post, my first thought wasn’t even a comparison to other blockchains. In general I think we have better distribution of wealth on Steem than the the global distribution of wealth overall. People act like this pooling is unique but it’s still prevalent in every aspect of their lives.

Thank you so much for participating in the Partiko Delegation Plan Round 1! We really appreciate your support! As part of the delegation benefits, we just gave you a 3.00% upvote! Together, let’s change the world!

Really great for helping out smaller accounts to stick around with steemit. I feel like people do have the ability to do it themselves though as well. I know I started with hardly any upvotes or hand outs from people and ended up buying about 90% of the steem I currently have on my account.

I have a feeling that every DPOS system has a real strong issues with centralization though because the mining rewards are set to a select few instead of spread out to everyone or everyone having the ability to "mine" help the network.

I check your account once in a while, I like how you write things up here. You are pretty bullish in the future of this blockchain. You are right that steem is not steemit. Steem is a network!

Nice post @taskmaster4450

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