Limiting rewards is what will reduce inflation !
After reading this post How viable is Steem as a currency ... . written by @theycallmedan I decidede to write this one.
A lot of people are worried about the inflation in steem and I understand why they want it to be reduced. I think there is an easy solution and that's limiting the rewards on posts.
After 3 days from now I will hit 2 years and 8 months creating and curating in steem. When you curate, you can't ignore to see how much others are earning and it's good for them. But, I would like to see more fair distribution of the reward pool. Most of us run away from the centralized world just to jump in a world where everything is transparent with no corruption. People joined steem to be themselves and to be rewarded for that. Their hard work should be rewarded if it's really valuable. Steem should be the best platform to create content in.
So, I would like to see more people happy with their contributions and to not feel exiled. I'm invinting people to steem all the time and when they join and post here for a while they start to ask me questions that make me understand their pain. That's why I'm writing this post, because I can tell my opinion about what's happening here from the point of view of others.
Recently I've seen someone asking ''What's the first thing people do when they join steem ?''. I think they look at the trending page. They want to understand what to do to get such rewards from their work. They do almost the same and in the end, they ends with earning a few cents or dollars from their posts no matter how hard they try. Only those who are lucky can be found by whales or big communities to support them. Or if they are themselves famous enough in the world to be support by everyone here.
Of course I tell to such people to join as much communities as they can and to use as much applications as they can. But even that didn't help them a lot. When we open steemit.com before joining it, the first thing we see that is ''Money talk''. Is that true ? The more money you have the more you earn ? This is what we want it to be ? I don't think so.
Of course the proof of stake maybe good, but we shouldn't forget about other types of proves we have here. Like a proof of brain, the proof of quality and activity, the proof of promotion. I think all proves should be rewarded and it's really possible what makes steem exceptional cryptocurrency !
That's why I'm so excited about steem, I think it can reward any activity on it !
So, maybe limiting the rewards on it will be a solution ? What if in the next hardfork a limit will be set on earning from posts. That limit could be set only on comments to not be manupulated. Let's suppose not more than $30 from a post and not more than $3 from a comment. I think more steem will be saved that way. Even those who are always in the trending page, they should create an other good post to earn that. That will make them more active. We will not see so many flags because of disagreement of rewards. Even newcomers will understand that to hit $30 they have to work hard, not just to join a community or to worship a while. We all feel the power of decentralization on steem.
After all, I'm just a minnow trying to see better steem and lower inflation. I'm not that good in economy but I know basics. I have a bachelor degree in international economics and I think that the monetary value of an assets can increase only if it will be hard to get for every single one no matter how much power he/she has or who is supporting him.
Maybe not everything is clear, but I'm not a native English speaker and I do my best to express myself. I hope the main idea from this post is clear !
Keep steeming and never give up on steem !
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Here is the community in beta.steemit, you can subscribe and post in it : https://beta.steemit.com/trending/hive-177976 . We are giving autoupvotes for that !
Check here what else I do to promote steem : The efforts I do to promote steem !
You have me thinking about all of this now. I need a second cup of coffee...
I'm not sure limiting the earnings of posts will be a solution to the effects of inflation. The presence of inflation serves as a catalyst to keep Steem Dollars moving rather than sitting idle in an account. It creates the need for folks to be active on the platform to earn more SBD and SP to combat the eroding effects of inflation.
But the inflation we experience here in Steemit is built in. It's on purpose. And I think the real problem is that it creates a disincentive for people to invest outside currency into Steem Dollars (and Steem Power.) If I know that by transferring in US Dollars for Steem puts me in an immediate 8.5% inflation hole, it's an immediate cause for concern. I need to earn at least that much just to keep my initial investment intact. It's a point of consideration for any serious investor.
But we digress. I think the real issue you speak to is how folks are incentivized to vote on high earning posters as opposed to high value posts. If I cast one of my valuable curation votes for someone like yourself, I'll earn greater curation rewards than if I cast it for a less known poster who probably won't have many other voters coming in behind me to pump up the value of my vote.
That's why we (still) see the whales and dolphins sucking up all the attention and votes cast, and the minnows struggling both for attention and curation of their high quality posts.
Here's a thought... What if curators couldn't see the value of a post? If they had no visibility to the earning power of any individual post, or the value of any Steemian's Steem Power, what would folks be left with as a criteria for curating a post?
Content.
We might be highly incentivized to read, comment, and curate high quality posts. Our thinking would center on trying to find the best posts to support, with the hope that many other thoughtful curators would do so, as well.
There are a lot of holes in this type of system possible. However, I think the concept may hold clues to finding processes that would more altruistically distribute rewards to high quality content, and away from artificial, but economically incentivized, reasons to support crappy content from high earning posters.
Just a few random thoughts over coffee in response to your thoughtful post...
Cheers!
Thanks a lot for your thoughtful comment. You're right, we should value more the useful content in steem. Not just to upvote to earn curation rewards. I also think that dolphins don't have that influence. Only whales can fix the situation and big projects like those who were upvoting bots. Maybe the solution is to change the reward system and to not give curators better reward if they vote so early. But to give better curation rewards to old posts, i mean 2 - 3 days old. So, those accounts will not just autoupvote any post from a creator who always earn good rewards, but they will digg deaper in the content and they will have time to consume the contnet. That 5 minute gap is making people too worry about the curation rewards. And I don't think care about them that much , because they will not make big money from that anyway.
But, I still think that limiting the rewards on a post will be a solution. It's just my opinion, I'm also not sure if I'm right or not. That's maybe an intuition. ☺
I agree that the five minute threshold creates a pretty short period of time to decide on god content over the promise of incremental rewards...
A good, thought-provoking post this morning, @clixmoney. 👍
Thanks. :)
Thank you both! For the article and the comments! You covered most of what I was thinking about @theycallmedan's article and your article @clixmoney with the very nice and thoughtful comment of @braveboat!
Cheers!
Thank you!
You're welcome. Thanks for reading.
Stop producing new blocks. =)
I don't think that stoping that will help, we need to see steem always among the most active blockchains in the world. I like when it was the first in blocktivity.info someday. Even now it's the top 6 and that's still good for us. ☺
100000000 Steem = 1 Cent Lol . Hey friend just chatting don't take it too serious. I'm not a pro on economics
ah, I understand now what you mean. I thought you ae telling that we have to be less active in steem to not make more blocks created. You maybe right that witnesses have to stop creating new blocks and just distribute what we have. So, the reward pool should be limited in this case for sure and limiting the rewards on single post and comment will help to reduce the inflation for sure. Thanks a lot for your feedback. Sorry that I didn't understand directly. You showed me light when you wrote this :
That's so true, the more steem we will have, the lower its price will be. It's just like printing real money. Printing in the country should be limited for sure.
You must trade it. And Get the outer value to inside. Also
The post shared in this tweet : https://twitter.com/Clixmoney1/status/1219951660161740800
Dear @clixmoney
I kidnly disagree with you.
In the first place authors rewards were cut in half. Now should we cut down also curation rewards? That surely would discourage even more people from Steem. Personally I would not see any reason to power up.
Yours, Piotr
I mean a big limit, like not more than $100 for a post. Do you see it fair when some are always earning let's say about $30 everyday while others earn cents writing posts everyday. I worry about those. I think if the rewards will be limited for one post, the ditribution of the reward pool will be better. That's just my opinion and a solution I see. Maybe that will not reduce the inflation directly , but that may help to keep some steemians here, and they will give good feedback outside and if others will see a good feedback they will join us and maybe even invest in steem what will may reduce inflation indirectly.