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RE: Diversify Rewards for Diverse Contributions
APR is an illusion, especially in crypto world. Some coins have tens of APR but no one likes to invest if the coin prices are decreasing. The point is not APR, but the value of platform.
agree. there is no shortage of coins with 2 or even 3-digits nominal returns.
Right and those are the coins with the majority of investor interest for obvious reasons. It's not so much the value that attracts investors as value investors don't seem to exist in this space right now. We do have speculators, but value investing requires an ability to truly collect enough data to valuate a platform, and in the current environment those metrics are not discussed.
On Coinmarket cap or trading platforms they don't focus on that. Long term investors might if you show an increase in active users over time, then this would work but it is all about metrics and tracking.
If the goal is to attract the average investor then you have to speak their language. If the goal is just to add value, then you need more users, SMTs, and more diversity in the activities.
How do you track value? Which metrics? The market cap? Also APR is what matters for investors at least. The cost to hold any token is measured by the APR and the higher the APR is the lower the cost is for the holder. So if you want more holders a high APR is a way to achieve it.
If you want more value, well as more people connect to each other then based on Metcalfes law the value of the network increases. In other words, the more people using Steemit and the more connected those people become to each other, the more wealth is on Steemit, but this doesn't mean it will be reflected in the price of Steem.
My point is APR is not important factor. But relative APRs among agents, such as investors and authors, can matter as a redistribution policy.