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RE: Go home SBD, you're drunk! How to maximize your author rewards

in #sbd7 years ago (edited)

Great article, @biophil. It makes sense to choose the 50/50 option.

I have a quick question for you. I have seen somewhere that Payouts are proportional to the votes ^ 2.

This would result in reward money flowing to the users with high stakes and that might explain why the voting bots work.

I have written a post (Is Steemit a Pyramid Scheme) about this.

What do you think about this? Am I missing something here? I'd appreciate your take on this, because I've seen several good posts by you explaining the mathematics of Steemit.

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Yes, that's approximately how Steem used to work. That was changed a while ago so now payouts are proportional to the votes. No ^2 any more.

The ^2 was actually a cute idea, and I think it worked better than people thought it did. The purpose of ^2 was to make it so that people were incentivized not to waste their votes on low-value content, because their vote's strength would be maximized by voting on content that other people think is valuable also.

Everything in life is a tradeoff, and the downside to the n^2 algorithm was that small users never felt like their votes were ever worth anything.

Thank you for your explanation @biophil. I'm glad that formula changed, because that formula would make the reward pool abuse mathematically possible.

With the current system, all the bot promotions start with a loss. They can turn profit, only if other than the promoters vote the content.

In other words, if no one else than the promotion team upvotes a post, they are guaranteed to have a loss in Steem terms.

I will need to chew on this. Replying to your post...

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