What is Return proposal in the Steem proposal system of Steem blockchain? Answering in Quora.
This question was asked in Quora and I have answered this question in Quora, shared in Twitter and additionally I am also submitting the same answer to this question as a backup in Steem blockchain.
In Steem.DAO anyone can propose a project, detail it with a Steem post and can list it in SPS for funding. It is then voted by a stake-based mechanism and accordingly the projects are funded in the order of their rank & availability of the SPS budget.
Now a Return proposal is the one in which the proposer of the project sets the beneficiary of the fund as Steem.DAO. That means the distributor(Steem.DAO) is getting the fund back which it distributes, in a Return proposal.
What is the implication for other projects/proposals as a result of the Return proposal?
The proposals are voted and the vote value is proportional to SP. So the proposals are listed in the order of the accumulated votes with the highest accumulated votes in SP in the top rank, the second highest will be placed in the second rank and so on...... Then the SPS will fund that project as per the rank and availability SPS fund.
So if a Return proposal has voted to a certain rank, then all other proposals with votes less than a Return proposal should not be funded. In other words, it becomes a new threshold for all other projects/proposals to be considered for funding from SPS.
Let's understand this by this example.
Now let's pay attention to the listed proposals and their current funding at https://steemproposals.com/proposals.
You can notice there are three proposals out of that two are Return proposals. The first proposal has gathered 22.85m votes in SP. The second proposal has gathered 21.23m votes in SP and the third one 19.64m in SP.
Now as the second and third proposals are Return proposals, all other proposals in the list which are voted below 19.64m SP, are not considered for funding.
The 4th proposal has 18.57m votes in SP and it has to surpass 19.64m SP, then only it will be considered for funding subject to the availability of funds in SPS.
At the moment the daily budget of SPS is 1694 SBD and only the first proposal whose requirement is 100 SBD/day is being funded and all others are being returned to Steem.DAO because of the Return proposal.
So the daily budget of SPS can easily accommodate the daily requirement of 4th proposal, even 5th, 6th, 7th also but they have to be voted greater than 19.64m SP so that their rank will be above the Return proposal and be considered for funding.
Thank you.