The Future Direction of the Steem blockchain and why we shouldn't change the economic model right now. [WARNING A POSITIVE ARTICLE].

in life •  22 days ago

Even though the updates to the blockchain might come slower then we like the blockchain itself is changing much faster than I could have anticipated.

The Steem blockchain (and in particular earning STEEM) is moving from content creators to entrepreneurs.

It's a huge change for some and difficult to accept but it's the best thing for the blockchain right now.

So, when I hear talk of changing the current economic system of linear rewards to something else (superlinear or n^2) I shake my head in disbelief.

Now is not the time.

You only have to look at how much has been build on top of the blockchain since the introduction of linear rewards to see how good it's been for the growth of the blockchain.

It has opened up a whole can of possibility for people that see opportunity and it's been a sight to behold and still is.

You can see it in all the development and projects that have exploded to a point that I can't keep up with it in my vlogs anymore.

Stopping this process of growth now to go back to a reward curve favouring content creators would be a mistake.


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It's time to start thinking ahead instead of thinking in the now.

Entrepreneurs have build their current business model on linear rewards and are adding more value to this blockchain than any content creator could ever do.

Changing the economic model to 'try something new' because Bob's article about the democracy on Mars in a post-apocalyptic world - part 66 is not getting what it deserves makes no sense.

I would even state that currently the real value of the Steem blockchain is mostly created by the people that build applications on top of this blockchain and only a little bit by the people that create content.

Why?


Because, in my 2 years of being here I doubt there have been many pieces of content published that anyone could not have lived without. Including my own content.

Yet, many others and myself could not have missed a single day of all the beauty this blockchain has to offer in it's opportunity and apps.


And that's what this blockchain is:


It's the blockchain of opportunity and not the blockchain of content.


I couldn't see it before but now I can say that creating content was the equivalent of easy mining and the first opportunity on this blockchain that people took and capitalised upon.

Everyone that's here today can therefor consider themselves VERY LUCKY.

Everyone that earned STEEM with content creation since the inception of this blockchain has gone through the same period early Bitcoin miners went through when they just started their blockchain.

It was sooooo easy to earn crypto at the start! Almost no effort required and those coins came rolling in. (I know some users earned more than a 100,000 STEEM in less than 6 months with articles, that's how easy it was).

And talking about opportunity. There was a girl that earned $30,000 with a makeup tutorial. She saw an opportunity and took it. It had nothing to do with content because you can find makeup tutorial all over the internet.

Now, it has become impossible to mine easy Bitcoin. (you need a mining farm and a laptop won't cut it.)

And nobody seems to complain that this is somehow unfair.

Yet on the Steem blockchain it's a different story.

The easiest way to earn STEEM no longer works the way it used to (content creation) or call it easy mining.

A lot more is required now and that's sadly not always well received.

But I don't agree with anyone that says that is bad.

Hence therefor another term you find on this blockchain.


"Proof of Brain"


When the easiest way no longer works you have to adept your strategy. And on the steem blockchain right now you have to come up with something else besides creating content if you want to earn STEEM efficiently.

And that's an environment perfect for entrepreneurs!

The new project STEEM MONSTERS one of them and a real eye opener for me.

It's the first project that does not require a huge investment or delegation to earn STEEM.

But it's even better than that, it's also a project that will make people want to buy STEEM with other crypto or fiat just to get their hands on these Monsters.

That's Invaluable!

Anyone could have come up with this idea but they are the first.

For me it's "proof of brain" in it's purest form and they deserve everything they earn.

Now is this is end of content creation on the Steem blockchain?

Of course it's not.

But for earning STEEM it will slowly be.

This will get tougher and tougher as a content creator, it's a normal part of blockchain when the difficulty increases, accept it.

But it doesn't mean that the future for content creators is bad, it's actually very bright.

Because the solution is already been thought of in the form of SMT's.

SMT's are what will drive and reward content creation in the future.

SMT's will be used by the entrepreneurs that are building the tools today that you can use to create content on top of the blockchain.

This is another reason to favour entrepreneurs over content creators at this moment in time.

Right now we are just in a period of change.

When you think about this blockchain 3 years from now. Almost none will remember this period.

New content creators will earn SMT's on platforms like dlive, dtube, Steepshot and Appics and will not know any better.

They will trade those SMT's for STEEM and sell it to fiat or something else.

Or maybe they will buy something with their STEEM/SMT's instead.

Right now only you know better. You that is on this blockchain today.

Every STEEM you can still earn right now with content creation will be even more precious in the future.

That's what I believe at least.

I would urge anyone to leave the current economic system alone and let it run it's natural course until SMT's are released and respect development on this blockchain as much as you can.

And now I'm off to buy some Steem Monsters cards! Damn these entrepreneurs!



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Great post as always. People are continually writing and making videos about how things need to be changed. While the STEEM ecosystem is not perfect, it is working rather well. We do not need to change STEEM, STEEM itself is changing.

The innovation of the community is starting to take over. This is a wonderful thing. What the first developers envisioned is rarely what results. You having a technology background means you know it well. However, that does not mean that what results is not fabulous.

I agree STEEM is moving away from the content end of things. I wrote a post where STEEM is not going to be earned but will be the wealth token. It is going to be extremely valuable since it is the token that is needed for bandwidth. The thousands of different projects that end up on STEEM are going to need this. That is going to push the price up.

Even a couple hundred STEEM is going to be very valuable in a couple years. People need to remember this. It is a point that is continually reaffirmed to me.

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Even a couple hundred STEEM is going to be very valuable in a couple years.

I so hope you’re right. My day job is sucking the soul out of me.

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I wrote a post where STEEM is not going to be earned but will be the wealth token.

One of the most exciting things to think about if you have a long term game plan on this blockchain!

This entire point that both you and @exyle make is what gets me as both a content creator and entrepreneur...Fired up! I wanna be here for the creativity. But I'll stay for the exciting things being built on the blockchain.

SteemMonsters is just the tip of the iceberg.

and watching what @dlive have been doing lately too....Very exciting stuff!!!

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I agree, steem will definitely gain much more value in some years time. I think it's a really good innovation and it's going to get much better over time.

Changing from content creators to entrepreneurs might be another step to be taken, my personal position, is that no matter what happens in the future I´m already very grateful for having this opportunity to make some STEEM from something I love to do.

So, my main objective is support the growth of this blockchain, doesn´t matter the path it takes.

Great write up! I agree 100%! Thanks for the share! Resteem

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Thank you.

As a brand new content creator on Steemit and DTube it doesn't really bother me that the rewards and payouts are not as big anymore... I never experienced them in what you call "easy" to earn times.

For me I create content around my passion and share it in hopes that it might inspire others in one way or another. Being rewarded for it, is a bonus honestly.

For me my first 2 weeks here were spent commenting and asking questions. I am amazed at how much I have been rewarded on some comments.

To me whats more important than the payouts is the community aspect of Steemit & DTube. I am amazed at how in general everyone is friendly and helpful. This could be due to the possible reward but who cares it builds a great culture.

Yeah content will be smallfry when the creatives build businesses around Steem, the Monster cards is only the start.

I finally posted my Introduction post and will be uploading my Introduction video shortly. Please do check it out.

Redefining the Limits Fire Breathing.jpg

This changes will surprise the users that have moved into their own comfort zone making lots of money with Steem wrongfully delegated to their accounts.
Ethereum wouldn’t have happened if true entrepreneurs never came to make use of the platform. Steemit got full with false entrepreneurs (whales) that abused their voting power to build and destroy users and that is what the changes are coming to eradicate.
The purpose of blockchain that I like the most is that it will allow the fair distribution of wealth around the world and the changes coming to the Steemit platform will allow for this distribution to happen.
Groups of people that tried to enrich themselves by trying to cheat on a platform that isn’t fully launched or still on its test stage will suffer the consequences and will pay for being greedy and for misinforming new users.
Steemit needed this to shake off all the crap that lots of ignorant fools covered this amazing platform with. 😊

Steem should be the blockchain that runs all the social token dapps. This is how Steem price will increase exponentially. Trying to be the one app for everyone is an incredibly difficult game to win. I like the direction the Steem Community is heading but my only concern is timely and proper implementation of SMTs. I mean let's be honest here. Steemit one of the most popular apps built on the Steem blockchain SUCKS. The only reason I stay invested is the future potential of a great Social Media eco-system built on top of Steem blockchain. For example, when Dtube can launch their own token and incentive based rewards or an even better dapp comes along and blows Dtube away. SMTs will allow the very best social dapps to be developed and Steem is their reserve currency.

I certainly do understand your point of view and yes it does favour the early comers on the steem blockchain. A month ago I attended a seminar at Ikeja-lagos and @tojukaka was discussing about POS - proof of stake as a punishment for those that will come in later to the blockchain. This is because as time goes, changes are made and the stakes become higher making it harder for newcomers to gain from the platform. I cannot argue with this fact cause, to me, it seems like the natural way of the blockchain. Changes ought to occur.

Then came the smt initiative with plan to Change this natural way of things, I call it the Armageddon, but unlike the overall destruction it will bring, it just nourifies the system instead. Its more like saying "hey this is the steem blockchain, its for entrepreneurs and content creators alike" there's space for both of them.

So I slightly disagree with you. Although entrepreneurs will have the upper hand. The change smt will bring will be productive and we should support it...
Entrepreneurs and content creators alike being able to co-exist and be productive on a more better scale.

I mean, who likes a $1 on his post?

100% agree with your post. I'm rally glad that someone understand all the greatness we are fortunate enough to witness. Just comparing BTC vs STEEM should make anyone realize that STEEM is way ahead of BTC. The only reason to not use STEEM I can think of is using a privacy coin instead.

100% upvoted, resteemed, followed and voted for your witness. STEEM needs more people like you.

Mark @exyle You really told everyone that reads this article that #steemwillmakeyourich and It will if they just paid attention to what you wrote about. Get that STEEM Power while you can because it becomes more and more valuable from here on out.....................

Quite simply one of the best Steem-based articles I've ever read. This blockchain will be almost unrecognisable a couple of years from now (but in a good way). Contemplating the collective role we all play, is mandatory.

Excellent article and the plain old truth of the matter...

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Thanks, man!

It is really nice to have many nice opportunities for investments on this block chain. Yes SteemMonsters is one of them that will bring more engagement and active users. I am about six months on Steemit and active every single day. I didnt invest anything when I signed up, but earned SBD and powered up. I can say that I was a bit lucky and things worked out for me. I dont earn much, but at least I have enough followers and good friends.
Everything became already slow for content creators and I dont see many people active as before. I think Newbies will have a lot of difficulties with all the changes we are going through.

Every STEEM you can still earn right now with content creation will be even more precious in the future.

Agree!
I’ve heard few steemiens talking about changing the whole 75/25 system to 50/50 and so on. I was thinking “is this really better or is this just another nonsense?”. That’s why it’s called decentralized, let the people work with what they have, use their brain and be creative. If I had a need for a change I would look for ways and not relying on someone else to change it for me. Just like these guys complaining about drop in their earnings. Did they complain when it was so easy to earn Steem? There is more and more people on this platform which brings competitivness, which brings new ideas...

Quadratic rewards and 50/50 author/curator split were in the white paper, so this talk of 'making dangerous changes' is a little cute.
That said, I agree with what you're saying. It would be a mistake to change now.
I just also believe it was a mistake to change in the first place.

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Is this you?. I enjoyed that video.

I lived through n^2 back in the day and I accepted it because I didn't know any better.

I remember I needed 10k SP to give away 1 cent. (with 40 votes a day).

The first time I could give away 1 cent I was so happy.

But I'm glad it changed (even though I probably would benefit a lot from n^2 now), linear is easier to explain and more fair in my opinion.

SMT's will give way to a whole experiment of economic models. It will be fun to see what people will come up with.

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That's me :)
Fairness is subjective, and I don't think it should be one of our aims.
The lottery is the epitome of unfairness, and look how many people "play".
I remember posting before bed, and waking up in the morning crazy excited to see if my post had gone viral and made $10000.
It never happened, they were usually less than $1, but I'd given it my best and knew I'd hit the right note eventually.
Now I'm virtually guaranteed $20-$30, even if I throw out some low effort rubbish four times a day.
If I spend days tweaking and refining a single post, the most I can expect is $50.
That's hardly going to attract the best and brightest.
It's going to attract a factory worker mentality.
Clock in, clock out, get paid for your hours.
It might be 'fairer' but it's hardly overwhelming the platform with top quality content.
Ultimately as more authors arrive the quality will rise to the top, achieving the same effect; so it'll be less important as time goes by.

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Fair points. You can already see many with the 'clock in, clock out' mentality, and this is where I dislike blaming the rewards model and shying away from social behavior.

Not sure a change will fix anything, but am very much looking forward to the future here where hopefully, my stake will be going out to some awesome projects and growing the blockchain that way.

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SMTs will let us pit some of these ideas against each other, too.
The steem blockchain is just the foundation; the competing structures can all be built on top; then we can see if ideas that work in theory actually work in practice.

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For sure. It's been a tough few months, especially if you are in contact which many smaller accounts, but I can see light ahead and am feeling confident that these competing structures will be a good thing for all of us.

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You just need a long memory. I first bought in at 50c, and watched the price drop to 7c.
HODL. Not just a catchphrase.

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I was actually chatting to the man at the top of the post last night about those times - sounded brutal - well done for not exiting down there!

My account predates those times, but my increased activity didn't start until early 2017, where (hopefully) the worst was and is over.

50c doesn't sound so bad now eh :D

Very interesting article @exyle.

Every STEEM you can still earn right now with content creation will be even more precious in the future.

This is how I'm looking at it.

I can't believe you're off to buy more Steem Monsters. Is there no end to it? 😂

But you have to admit that Bob's - "The democracy on Mars in a post-apocalyptic world" - part 64 was pure genius :)

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Probably one of the best articles I've read in favor of keeping things as they are for the best long term benefits for all SP holders.

Although, i think the reward changes were to dis-encourage high self-voting, and try to push people out to curate a bit more. I'm not sure if a change would help - they will just up-vote alts/friends anyway.

When SMT arrive, I hope your prophecies will come true. Cheers for the positive Sunday vibes :D

And now I'm off to buy some Steem Monsters cards! Damn these entrepreneurs!

LOL, any spare Legendary's this way please!

I agree that things should not be changed too much. The system as it stands gives everyone a chance to earn something, but it can never be perfect. It's still a tiny platform and people should be working to grow it rather than worrying about short term profits. There may be much more to be made down the line, if it can grow. There may be competitors coming along and Steem needs to make the most of its head start. The community is vital and no other blockchain platform has such a good community, as we saw at the London show.

Great article, @exyle! I am all for the natural evolution of Steemit. Forcing changes now won't benefit anyone and may actually do harm. Some folks are just impatient and want to make a quick buck and then they want to change the system so they can continue doing what they are doing without putting forth much effort.

Awesome and true post.
I was seeing it already and wanted to write about it. Your post hit the nail.
Thank for​s sharing this one.

The one with the right mind will profit from it. :)

Changing the economic model to 'try something new' because Bob's article about the democracy on Mars in a post-apocalyptic world - part 66 is not getting what it deserves makes no sense.

The series got off to a great start but he really jumped the shark in part 49.

Very well articulated. Some people joining now or habitual of easy earning are complaining. If anybody is not happy with current model then once SMTs are there they can experiment with their own model. Simple. Period. Khalas.

I think we should let EOS try and come up with a better system and then possibly make some adjustments. I don't think they can do it but sometimes I think competition can be good.

This is a strawman argument -- you are arguing against a viewpoint that nobody on the "opposing side" is taking.

No sane person wants to adjust the curve in an attempt to reward subpar content creation. That's certainly not the argument being made.

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Intentions don't make content valuable. Putting a lot of effort in a blog post doesn't make it valuable. 99.99% of what's published on Steem is in the 'nice to know' category, including my own work.

I don't even agree with @exyle that a superlinear algo would reward content creators better at this point. Spammers would keep profiting from their self-votes, and bidbot votes would simply become more concentrated. It used to be easy to earn Steem in the first six months (before I joined) because there were relatively few bloggers and relatively many investors. That paradise full of low-hanging fruit will never return.

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This has nothing to do with what I said.

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I was explaining why what you said was irrelevant.

I 100% agree with you. Do we have any idea when SMTs and the Community Hives are going to be released?

This is a strawman argument -- you are arguing against a viewpoint that nobody on the "opposing side" is taking.

No sane person wants to adjust the curve in an attempt to reward subpar content creation. That's certainly not the argument being made.

quite interesting and valuable information about steem future.....Basically, i m new newbie here and I dont have much knowledge. can you further explain that what is SMT? And you talked about steem monster but you know that are paid and a newbie like we can't afford it.So what you say that what a newbie should his concentration on?

Very interesting information and it's true, the future is here.. 👍

It is really nice to have many nice opportunities for investments on this block chain. Yes SteemMonsters is one of them that will bring more engagement between users. I am about six months on Steemit and active every single day. I didnt invest anything when I signed up, but earned SBD and powered up. I can say that I was a bit lucky and things worked out for me. I dont earn much, but at least I have enough followers and good friends.

Very interesting information and it's true, the future is here.. 👍

why we shouldn't change the economic model right now because we believe that Crypto is our future currency. By the way thank you so much for share great article for us.

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Greatest post on steem blockchain i've seen on steemit so far, we all pray steemit doesn't crash but grows

Entrepreneurs will not come if there is not a big user base and you need incentives to draw in the users. I hope SMTs will come sometime this year because as things look right now we are just limping along.

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Couldn't agree more. I mean Dlive? Dtube? Steepshot? And now Steemmonsters? Clearly this blockchain is in big trouble. Can't see no incentive in any of those projects...

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So, after 2+ years are you satisfied with the current number of users and growth rate? Regarding dtube: it often takes centuries to load ( and I have good internet connection), steeptshot uploads photos when it feels like it and other times it just gives an error, and I'm not the only one who has experienced these issue.
Although I love this blockchain all I see currently are a few thousand active users who post ok-ish content and some somewhat ok-ish apps built on top of it. Not much to shout about after 2 years. I'm just a seeing is believing type a guy and I'm getting a bit tired of " this will be awesome in x amount of time".

why we shouldn't change the economic model right now because we believe that Crypto is our future currency. By the way thank you so much for share great article for us.

Nice read. I leave an upvote for this article thumbsup

That's a great post Exyle!

Steemit has helped alot of people to make it and grow

Why not steemit inc upvote every users post daily for atleast 0.10% each.

I 100% agree with you. Do we have any idea when SMTs and the Community Hives are going to be released?

Even though the updates to the blockchain might come slower then we like the blockchain itself is changing much faster than I could have anticipated.

You are absolutely right on this, though we might expect change drastically for blockchain and crypto currency related.

Steemit is moving a bit faster from just content creators to entrepreneur as you have said, because people you have had chance to invest get money for themselves whether their content is more good or not.

I believe your opinion should be taken with desirable care, I believe the mining for steem lie solely on content creator for now but who knows what the future will brings just like you have said. The application created has contribute immensely to the growth and development of steem generally. The future is yet to come but must be prepared for and plan towards. Long life steemmonster. I agree with you.

Agree, great article.

So what I am hearing is that entrepreneurial capitalism has and will continue to take over the Steemit block-chain much as it does in our every day life...just as Facebook and other sites slowly have become nothing more than revenue producing "stores" that sell stuff...Steemit is heading in a similar direction....one difference I hear and see...it requires a more 'intelligent"....tech savvy....graphic comfortable individuals to become one of the players on the Steemit train...

That's okay...just like in the "real" world...I know my place...I'll just become an investor and not a creator...reaping the potential benefits down the line passively....as one who is older...I am comfortable just "hitching a ride"....I don't always need to be the driver...

Changing the economic model to 'try something new' because Bob's article about the democracy on Mars in a post-apocalyptic world - part 66 is not getting what it deserves makes no sense.

Exactly! It's mind numbing to listen to people complaining instead of just writing good posts and then botting them up themselves. This is a golden age and opportunity.

Thank for writing about The Future Direction of the Steem blockchain.

Thank You for share your great blog with us.