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.

link

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
@dalz