Steemit Whales Stockpile SP: Government Spending Analogy and the Solution Revealed!

in money •  3 years ago

Steemit.com has grown at an explosive rate and at the same time we have created a capitalist style equality divide where the rich are “super rich” just get richer and the poor beg for votes at the side of the Slack channel! For this analogy I refer to “rich”, as being rich in Steem Power (SP) as can be seen in the Steemd richlist. The problem lies in the fact that the vast amount of SP wielded by the top echelon is “stockpiled” and of not much use to the Steemit economy. There is no way all that Steem Power can be utilized efficiently by one person and using it effectively for the growth of the economy through stimulating content writing and curation jobs. Even with the aid of bots, it is unlikely that all the “stockpiled” SP will be utilized to its fullest and furthermore the bots do not have human discretion to distribute meaningfully weighted votes to those in need or who can properly vest in others; which in my opinion is a human’s job to discern. Using a government and corporate spending analogy, one can glean the economic damage caused from recent history during the 2007 financial crisis and the ensuing grim years ahead. Corporates fearful of uncertain markets, began stockpiling cash reserves and in some cases government spending also dwindled. An ABC News article entitled “Hoarding, Not Hiring – Corporations Stockpile Mountain of Cash” By RICH BLAKE and DALIA FAHMY, highlights the need for corporate spending to stimulate jobs and the economy as a whole. The below quote excerpt from the article is not dissimilar to the situation the Steem Power whales find themselves in, with their stockpiled SP: "Cash is piling up faster than companies can figure out what to do with it," said David Bianco, head of U.S. equity strategy at Bank of America. When an out-of-work Salesman, Sean Byrnes, who lost his job at a Manhattan-based financial research firm was asked about the mountain of corporate money sitting on the sidelines, Byrnes offered his own suggestion for what to do with it: "Companies should absolutely spend some of that money to put people back to work," Similarly, in an article entitled: The Impact of Government Spending on Economic Growth by Daniel J. Mitchell, Ph.D. It is explained that when a “government is too big [...] [it] undermines economic growth by transferring additional resources from the productive sector of the economy to government, which uses them less efficiently” The article goes on to describe the inefficiency cost and stagnation cost, among others, which stem from reduced government spending or bloated government growth as opposed to investing in the more efficient public sector. What is the Solution? The solution comrades, is simple, “Voting Power Delegation (VPD)”! There is simply too much rapidly growing content for whales to review and as told in confidence by a whale, in an informal interview, loosely quoted as “there is no way enough fair votes can be made by a single whale to promote all of the good stuff.” The solution starts by being able to delegate voting, which could kick-off with something as simple as a voting private key, distinct from a private posting key in that it will only allow voting and not posting by the trusted recipient(s) of the key, to vote on behalf of the SP “stockpile” holder. This idea can be developed even further, where multiple unique voting private keys can be issued through the wallet interface and disabled or revoked if a particular recipient “goes rouge”, without having to re-issue all private keys again to all recipients. (This multi-key concept should also be implemented for other keys as well) From the recipients’ viewpoint, the received key would be loaded into the recipient’s wallet and multiple voting keys can be loaded if the recipient represents more than one large SP holder to efficiently pool the recipient’s own and represented voting power into a single vote, thus bestowing an enhanced distribution to the authors worthy of such votes. The wallet “key loading” feature, further adds convenience to the trusted key recipient in the sense that it is no longer required to logout and log back in to make use of other entrusted keys, as all will be automatically pooled. It would be important to have limits, where the SP holder can set what percentage of Steem Power to delegate, so that there at all times remains enough for the holders’ own ad-hoc use. One could also move away from the private keys, and simply allow the SP holder to add the usernames of the parties he would like to have representing his voting power to a specific list in the wallet, with limits of percentage of total SP each representative could wield. The community could also monitor via the blockchain which Whales are delegating their power for the betterment of the community as a sort of peer pressure to encourage them to act. I also offer up for discussion the issue of interest earned on the delegated voting power and the related curation rewards. Who should benefit from the interest and curation rewards of the delegated votes, the “holder” or the “representative”? Or should there be some sort of split, or furthermore will the split ratio be hard-coded into the blockchain or will the SP holder be able to set the split ratio as desired? I look forward to your comments on this discussion point below. Vote delegation is in summary, an innovative way of efficiently allocating Steem Power to the community. “Stockpiled” Steem Power will not benefit the growth of Steemit, whereas pooled delegation to trusted parties will assist them in enhancing the community in a surgically precise manner that whales simply cannot do efficiently at a macro level. In closing, I leave you with the South African term, Amandla, which comes from the Xhosa/Zulu tradition of call-and-response. Traditionally, a crowd member declares "Amandla!" meaning "power" and the crowd responds "Ngawethu!" adding that the power "is ours." https://www.youtube.com/watch?v=VIxhrDf8Iv0 Attention Steemit Corporate Government … the people want power, empower us to grow the Steemit community! / https://postimg.org/image/buqw49m1b/

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This is kind of what streemian.com will allow you to do in very near future. You can technically pickyback you account to another account and use it as voting proxy. If big whales now pick several other proxies, streemian will take care of adding the whales voting power to the votes of the small guys.

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Brilliant, the solution is close at hand, pm xeroc for an invite to streemian.

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great work, as always xeroc.

Thanks for the vote @dantheman , the government is listening to us!

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They always are, so is steem!

Really strong analysis. I have a sneaking suspicion there are some funds are earmarked from the Steemit user account for some future sidechain and subchain applications. Im only speculating though.. these may involve some kind of split, weighted voting system.

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With Steemit, anything is possible!

I upvoted due to you at least thinking of an answer to the "issue". This comes down to who can vote now, and it probably will stay as is. What it sounds like is you are suggesting a current capitalist system converting into a socialist system? I don't think most people will like that as then nobody will get any huge payouts at all, and it would be evenly distributed to 0.000001 for everyone.

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Thanks for the feedback, I would think pooled voting power from the whales to delegates will increase post payouts, remember some of the whales' voting power is dormant and not active in the Steemit economy, pooling the votes could help delegates uplift new members and struggling ones who may leave the system if they don't receive some sort of social aid.

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We're still limited to a small enough crowd to survive redistribution of some sort.

We still need to discuss whether the trusted recipient receives a share of the the curation votes he helped achieve with the whale's SP? If so, what percentage! Regarding the 'interest'/compounding on the SP, I believe the holder should keep receiving all the interest, if you lend someone margin you earn interest anyway, so you shouldn't be penalised from earning interest on the lent out SP.

https://steemit.com/curation/@steemed/im-a-steem-whale-looking-for-writers

Why would you think that it's anything but a meritocracy around here?

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Meritocracy...that would have been a great word to use in my post above! I am familiar with the above post you linked to me, I replied to it twice. I represent @bravenewcoin and @expanse as well, I believe I will make a difference in the Steemit community.

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Because that can't be the case if they want to survive.

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I don't think OP is doubting the meritocratic aspect, if anything it seems to me that they're addressing the fact that the ratio of influential voters to general users maybe isn't sufficient for a successful meritocracy altogether, so the solution is to distribute that voting power to compensate. Maintaining the integrity but compensating for the growing volume.

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100% correct

While I agree with your post at the same time the platform could have been released on the blochain as just a decentralized social media site and instead chose to be ad free and reward users for contributing. Are there changes that need to be addressed? Of course! It's still in beta and I believe that those with a lot of voting power will want to listen to others requests, because in the long run that value will help them. I appreciate your post! Keep up the good work. I love the meaningful back and forth conversations this platform permits.

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Thanks for your thoughtful reply, much appreciated. I'm glad you read the post and responded meaningfully.

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Someone who takes the time to conceptualize an idea for an improvement that could help others here deserves to be taken seriously. Keep it up!

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Upboats, thank you!

great idea. I've been tossing this issue around in my head and this is a great solution. Wish I would've thought of it!

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Are you in Lansing too?

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What is Lansing?

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The capital of Michigan,the home of msu.

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I learn't something new

Thats intresting idea, need think on it!

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There is a lack of diversity in the initial offerings. They need to give out a second one before reopening registration.

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you're not a whale by any chance are you? :)

Very elegant and pragmatic idea. Props to you, sir!

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Salute!!

the value of this post illustrate perfectly how "good" the system is... it is a great post, with a great idea and still only 0.95$(with 24 votes)...

i'm addicted to steemit, and that's the reason i hope devs come with a solution, if it doesnt change, it will fail.


Have a look in this, it's great too!
https://steemit.com/writing/@steemitdude/when-you-need-an-idea-to-a-new-post

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The post is still new, give it time. The whale active hours are at a close. But this illustrates my point, we have 24 votes at this juncture and 25 replies, this only adds up to 0.95$ if i was in a room with 24 people I'm sure i could borrow more change than that. The 24 people on here are unempowered, their votes don't have the power they need to put their name and values behind something, we all have to sit around and wait for bots or whales who are too busy running the backend to have time to see each one of our posts, thats why trusted delegation can work as an extension of the whales themselves.

Whales will eventually sell and people will pick them up and spread around the upvote wealth. Its going to take some time I admit but were still in beta.

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Hmm selling SP in the internal market is an idea also, perhaps at a discount on the market price of Steem so they can realise the full time value of money upfront!

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The ability to transfer SP is also useful, one might want to donate SP to a new user to motivate them but not SBD which they can immediately take out the system. SP is like shares so you should be allowed to sell them (internally only) or transfer them. I heard you can transfer the SP using the CLi wallet but this functionality needs to be in the GUI wallet for non-devs.

The ability to sell or transfer SP may help boost the price of Steem which is used to acquire SP, if the investor feels less locked-in with regards to SP he may invest more.

For example I might be inclined to purchase more SP with my disposable fiat income if I knew I had the option to sell it incase of say a medical emergency, albeit at a penalty for early disinvestment.

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Love it!!!! Viva Steemit!!! Viva Steemians!!!!

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Your images keep getting better!

If only a select few have the power, everything will collapse.

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That's the current situation!

visualize the steemit's non beta scenario dude 8]

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I have some ideas in the pipeline, more to come soon! Thanks for the positive comment.

Genius.

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much obliged

"One could also move away from the private keys, and simply allow the SP holder to add the usernames of the parties he would like to have representing his voting power to a specific list in the wallet, with limits of percentage of total SP each representative could wield."

I like this more than the private keys idea.

I would also propose that maybe the voting payout should be shared between all posts across the UI. That way, whoever does have the most votes within the allotted time gets the biggest pay out. I don't like seeing a post with a majority of votes getting less than a post that's got 10. It's a huge kick-in-the-guts to us who want to impose a form of equality here. We could do this by giving a time restriction on a Curator's vote rather than an Authors's post.

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I think you are onto something, distributed vote payout, based on number of votes sounds fair to me.

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I third this!

the people want power, @thecryptodrive

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"Ngawethu!"

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dont know whats it - "Ngawethu!" ))) , @thecryptodrive

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It means "the power is ours"!

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Right ! thanks))

I see some of the problem as being that the first page only gives you the most trending articles now people doing it for profit will hit does first making the collection of curation fees easy, my recomended has not shown me anything in last 2 weeks, I try to go and vote on those that have little feedback.

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That's great I will do the same, thanks for the advice. We all have the power to do good.

Here is an Archive of Cryptocurrency App building Code on Github for anyone creating a Steemit app
https://steemit.com/steem/@marsresident/github-cryptocurrency-app-creation-archive

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I wish i could code!

@bitcoinnational I am curious as to why you downvoted this post?

Presented in a clear manner. The logic is sound. In the stock market we call this in a simple term. They whales control the float. I do love steemit.

I had not expected to see posts like this so quickly. Steem is a microcosm of the world economy on overdrive. Money makes more money. There's no way around it. The rich get richer. Sure if you're smart you can maybe carve out a place for yourself. But if you're one of the masses you're entering this game at a million dollar disadvantage. Good Luck.