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RE: The good, the bad and the ugly
What's the utility of a reward token? Where's the intrinsic value in that?
Content is important to attract people. SMT can be a way to bring content. If they wouldn't, we wouldn't need them.
The chain doesn't care how widely distributed the utility token (the one providing RC) is, as long as there's a way to provide the users with the RC they need to interact, which is what RC pools will be for.
The concentration in a few hands is a problem for reward distribution only, and that can be solved better with SMT than by hoping that steem distribution will become better in the future.
I also think that Steem being concentrated in fewer hands leads to governance problems, as the needs of the mass of users don't need to be considered when appealing to witness voters.
Posted using Partiko Android
I'm not sure the pool contributes to better distribution. Witness voting has always been decided by a few whales, nothing changed about that. When you're powered up it's not difficult to beat the inflation of STEEM with curation and author rewards, not even counting the witness rewards. I don't have the numbers, but I doubt the percentage of SP of the holding whales has dropped significantly. Real distribution happens on the market imo.
It has the potential to lead to better distribution, especially if we revert the curve or even invert it. It certainly works at least a little. There are plenty of authors who can't afford to buy in who nonetheless power up. So far it's not led to wide distribution, but there's a pathway. If we eliminate Steem rewards, we'll always be stuck with the distribution we have now. Gotta think long term, is there a path? I argue, prior to EIP, we were on a path forward, even though there were abuses along the way. The tools EIP provided gave more power to those who had it already. Now, in the hands of benevolent whales these can be used well, but it leaves us a fragile ecosystem, hoping changes that benefit them will benefit us all. I think the new curve is an obvious example of a rule change whose negative side effects are only hearsay for those who advocated for it. They know it's "worrisome" but though they see its impact, they don't feel personally or in their immediate circles and so don't get quite how powerfully it's negatively impacting a lot of good people.
A more widely, evenly distributed voting token would benefit us all. I don't think that's on the smt roadmap.
Posted using Partiko Android
Sorry, but your impression is wrong. Before the EIP the earning potential with SP was even higher than now.
The changes in the EIP did benefit all. It lowered earning potential over the whole board, leading to a better distribution of the pool. But it still doesn't forcibly expropriate holders. Which is good, that should not be a target, or holding wouldn't be desirable.
Wide distribution of the voting token is not valuable in itself. People who "can't afford" to put some money in and want all the tokens for free do not help the ecosystem at all. Sooner or later they sell, creating only downwards pressure. Faucets are good, but with too much given away through those there's no reason to buy any more. Long term that doesn't work.
Besides, authors who earn SMT will still be able to exchange them for STEEM to power up.