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RE: Hardfork 21 - Steem Proposal System (SPS) + Economic Improvement Proposal (EIP)
Authors will likely complain over what appears to be a more than 50% reduction in their rewards
Numerically speaking, changing the split from 75/25 to 50/50 is a 33% reduction to the author portion and if one factors in the budget redirection to SPS, it is a bit more, but still less than 50%.
To be more specific 75% of 75% is 56% of total inflation going to authors now (ignoring reverse auction, which increases this a bit). 50% of 65% is 32.5% (again ignoring reverse auction). So the net reduction is 42%.
This ignores changes in the economy and behavior and significantly overstates what authors are receiving now. Rewards from votes that the author pays for don't count.
Thanks for mentioning the real numbers. I guess over time the significant increase in number of daily downvotes will (at least for most authors) lead to nearly the same rewards as we now have. If all works out as intended, even to more.
That plus the increased curation rewards looks like a big step in the right direction. Time will tell, but overall I think we are headed in the right one with HF21.
The problem is that most people don't dare to downvote, anyway, because of fear of retaliation. (In the post My STEEM Vision. I wrote more about the problem.)
If downvotes will generate (additional) curation rewards in future I may create a new (peaceful, not retaliating) account just to downvote it regularly. :-)
Yes, that's true, especially for smaller SP holders, but I guess larger accounts will build/use kind of automatic downvote services (maybe targeted at 'overpaid' authors on the trending page) to maximize their own rewards.
Maybe some people will even create an extra (unrelated) account for not having to risk their main account being targeted.
Actually, I had such an extra account just for flagging whales ... but it had not enough STEEM power to make any difference. :)
It could. As noted, this is a baseline estimate ignoring changes to behavior and a very large portion of the pool now goes to paid votes and self-voting, meaning not much left for actual rewards to authors in practice.
However, no guarantees.
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