The initial token distribution problem of STEEM and @dan talking about STEEM 2.0 on EOS (Telegram Q&A)

in news •  7 months ago

It was @ashe-oro who first told me about the confirmation that @dan is making a "Better" STEEM on EOS. On 3/22/18 @dan came to Telegram and answered a bunch of questions including some questions about the steemit competitor. Still we haven't got any names and I'm pretty sure that the primary focus is given to EOS development. But @dan has learned lessons and faced disappointments with both BTS and STEEM. I don't think of him as Christ figure in blockchain-space but I acknowledge that he is one of the best minds in the business. @dan is a genius and the only person who I can think of being better is Leemon Baird, Founder of Hashgraph.






You can see additional topics covered at: https://forums.eosgo.io/discussion/444/eos-telegram-summary-3-22-18-dans-best-q-a-to-date On this post you can see that there is a planned airdrop but not for STEEM: https://steemit.com/eos/@ashe-oro/dan-plans-to-build-a-steem-competitor-on-eos-says-in-telegram

STEEM's Token Distribution Problem


EOS had the fairest non faucet cryptocurrency distribution that I'm aware of. I think @dan learned a lesson from STEEM. I see 2 primary flaws in STEEM:

  • Lack of a clear and specific Constitution
  • Messy token distribution

The one I want to talk about is the second point. I joined steemit in July 2017, more than a year after the creation of the platform. There are these so called issues like few whales owning most of the VESTS (SP) I have no problem with few rich people owning large amount of wealth. My problem is with the methods/path/procedure that lead to such wealth. I'll drop some charts from @arcange

Whales are slowly loosing their ownership percentage. That isn't surprising under competitive free market capitalism. But the messy initial distribution still shows negative effects withing the platform. STEEM is a DPoS blockchain. But initially the coin/token was actually mined through PoW to a large extent. Things would be OK if STEEM was just another currency like Dash, PIVX, Verge, SmartCash etc. But STEEM fuels a social media platform and the VESTS (SP) owned means influence. There are many whales, sharks, dolphins who didn't earn their initial stake or didn't pay for it like @transisto They just mined it while most people didn't even know STEEM existed. By the time people were flooding in, PoW was all gone (as it should be) but the initial token distribution was totally messed up.

For a "Currency " it would have been OK. Dash had an instamine and it is one of my favorite coins. But for a social media platform that rewards content creators, such distribution is unacceptable.

The year long ICO of EOS totally solves this problem. It is a process with set dates and there is enough time for people to trade, promote and research the project. Whatever @dan is going to be building on EOS won't have a token distribution problem. That's a great thing. If SMTs deliver, I think STEEM won't be crushed. EOS is general purpose. SMTs are going to be specialized for social media. I will sell some SBD for EOS but I'm not powering down.

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To make the distribution fair, @dan could airdrop all the tokens equally to all EOS accounts. It's a simple way to ensure good distribution. Whales will only emerge from providing great content or spending lots of money. It's surprising to hear that STEEM was mined. It doesn't make sense for what it wanted to be.

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I'm 100% sure of an airdrop. How much of the supply or who would get the airdropped tokens is just speculation at the moment. A set amount per account seems like the best distribution in this specific case.

I don't get it, isn't EOS supposed to be Steem 2.0? Why would @dan not write Steemit?

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EOS improves upon the DPOS technology behind STEEM. But EOS is general purpose blockchain like Ethereum but made way better.

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I just wonderd why he writes steem 2.0, when in fakt he means steemit 2.0 after launching EOS.

EOS is also centralized. ETH whales bought most of the EOS.

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I can't find the chart at the moment but relatively speaking EOS had the best distribution when it comes o popular ICOs.

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Yes. the distribution was better than STEEM but due to the ETH exchange rate vs EOS a lot ended up in the hands of a few ETH whales. Now, they will use their stake to vote for their business partners and friend for the witness positions.

I don't have a problem with the distribution on Steem, the problem i have Is the fact that these whales are busy selling all their upvotes to bots.

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Bots are a symptom/side effect. The problem is the distribution. Let's see why bots exis:

  • The built in promotion feature doesn't work properly
  • There are not enough content exploration features (To be addressed in HF 20)
  • You need to be trending or hot to get noticed unless you already have at least few dolphins backing you up.
  • Whale circle-jerks where whales don't vote much on minnows.

That last point actually makes vote selling look like a feature. Would you like to see a whale using his/her $40 votes ($400) to upvote few of his/her friends or to see those 10*$40 votes get spread around 50-100 random minnows who'd now get noticed better.

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Your post makes me reconsider my thoughts about bots a little, at least you get the chance to get more valuable votes from those who use them. And the money is used up anyways. So at least someone gets on trending, even if nobody would use bots its hardly possible to make it to trending as a small fish.

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Happy to have expanded your perspective :-)
When it comes to bid-bots most rounds actually end up at a negative return. Some bots hae taken measures to limit the bids because of this. You can check it at htvtps://steembottracker.com/

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