The Investors Era On Steem

in #investors4 years ago (edited)

Steem has entered its investors era. That seems to be the case after the first few days after the HF21 and HF22.


Way is this the case?

There were a lot of discussions about the 50/50 split in authors/curators reward, but the main thing is the CURVE. That thing that everyone had, and still has hard time understanding.

The Curve!

Her majesty the curve!


The STEEM rewards are on the horizontal axis and the loss/gains before and after the curve on the vertical axes.

The green lines mark the 20 STEEM. Every post with payment less than 20 STEEM is getting less now. Probably like 99% of the posts. To have a 20 STEEM reward your post need to be voted from a cumulative of around 300k SP. Yep a third of a million SP. If you don’t have friends around that hold cumulative of 300k SP, then your posts will be getting 40% less. That is the overall value of the posts, curators and authors. The authors share gets further reduced to around 60%.

They call this curve superliner convergent. The convergent means that after while it has limits. After while the curve is reaching a limit and it is not rewarding the largest valued post exponentially. But the thing is the limit here is very high. For the 99% of the authors this curve is superliner exponential.

If you don’t have friends with cumulative value of 300k SP, there is still a way to reach this value. The good old bid bots. But be careful, there are free downvotes now, and you may get some for bidbot abuse if you are using them to promote low quality content.

Why is this the investors era?

Simple, because it is suitable for investors. The 1%. Or maybe the 5% here on Steem. Let’s see.
According to the Steemitboard ranking there are 64 accounts with more SP then 300k.



So, 64 out of million and more accounts, its 0,006%. Ok but only around 50k accounts are transacting daily, 64 in 50k is 0,13%. But around 10k account are maybe posting these days. 64 out of 10k is 0,64%. You get the idea. The 1% or even less.
The more you have the more you earn. Also, an investors friendly thing.

But this is crazy why will everyone do something that benefits only the 1% or less?

You may ask.
Because the 1% are the people who runs things around. Without their money in, my 100$ dollars investment per month won’t change a lot compared to their millions. But we are many, each with 100$ and it will make a difference. The previous system gives that a chance, it seems to not be working.

This is just one of the things for the current Steem price. The overall picture is much larger, and it need to consider the whole crypto industry trend and Bitcoin. Steemit Inc selling, is also a big factor in the game.

Is this the right solution?

No, it is not! In my opinion. Like everything else it has its pro and cons. When assessing something and build opinion it is nice to think about it in pro and cons. Try to make a list.

Does it means that the old system was right? Nope it was not. Its as well had its pro and cons. One of the pros was that it distributed the token to a lot of people, but at a cost.

Like for many things in life, no ideal solution here. The old system was more workers friendly now, and this one is more investors friendly. Before it was a period for distributing the token in as many hands as possible and now, we will probably see a reverse action. The token will become more concentrated.

It is the cycle of things. No ideal solution just oscillating between the two. Probably after some period the workers era will comeback and the 99% will have their chance once again.

The investors era has just begun here on Steem.

All the best


Yeah it looks like the new curve is all about solidifying those who invested money or got in early and have stake to try and build a user base that can take it forward

Redfish came in and instead of staking took rewards and left and instead of buying when whales dumped they continued to farm and sell. That sort of behavior won’t work now if you want to bother earning anything long term and while it may put up a barrier it’s something better than we had

I mean there’s around 25mil steem at current price liquid on the market! No ones picking it up for a reason! Steem was always seen as a means to sell fro fiat or BTC and never something to hold

Its a change that we will see how will go. STEEM is one of rare tokens that actually is given away to the regular user, and it still holds value. EOS for example has its witnesses that are taking all the inflation/reward pool, and then they are trying to develop dApps and use cases for it. It is extremely investors friendly at the moment .... but they also want to distribute their token trough social media in the future/voice, and we will see how that will turn out. They will start the workers era soon :)

STEEM is in good position regarding distribution ....

It seems to be the only solution to assure the survivability of STEEM longterm.
Redfish and minnows had 2-3 years of time to invest, but they did not.

This is a clear sign that they want investors now, the mass adoption can wait 2-3 years until the price is at sustainable levels again. They can't survive on 16 cents STEEM for a whole year.

There are a lot of Steem accounts out there.... compared to some other projects, and better token distribution ... If price goes up now it will create a nice positive spiral

Yeah, but most of them have not transacted in months or never got active at all.
But I think we can reactivate 100k user accounts when the price is above 5$ again.

I still remember the days when some guys from Africa made a monthly salary here every day when the price was 5-9$. Hoping to see that again. Changing lives with a few upvotes is a great feeling.

That's a very easy to understand breakdown of this... perhaps the best I have seen yet. Cheers.

Thanks .... glad it helped :)

In my opinion, a less drastic curve could work better for both sides... I think there will be a softening setup soon, if not, this is going to become a desert

That is probably the tool for fine tuning.
Where will the limit be? 10 STEEM, 5 STEEM?

Something in between, for sure. If a post reaches more than 5 USD and it is not worthy then Downvoting will work just fine

I agree - the awards were ridiculous and now even cry at all - people will leave and there is no incentive for new arrivals.

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