Higher SBD Equals Better STEEM Distribution????
Many point out that their view that STEEM is in the hands of too few people. There are a number of accounts that have a tremendous amount of STEEM power. At present, there are 37 Whales, accounts with over 500K SP or more. That is a lot of power in the hands of very few people.
Over the last few months, I regularly post what the percentage distribution is and how it changes during different intervals. For the past year, the percentage of the SP that the Whales controlled dropped significantly. This is a great thing for the STEEM blockchain.
When looking at the way the system is devised, I notice a major variable that should continue this trend. Contrary to the rich getting richer idea, we see the greatest growth rates at the lower end. The smaller accounts are receiving a larger portion of the new money created.
The fact that the authors receive such a large percentage of the daily reward pool tells me that the system is designed to reward those who post. Curation and content creation are the foundations of this blockchain. With that idea in mind, the ones doing the posting are growing their accounts.
We just went through a period where the price of SBD's took off and remained elevated for about 90 days. While not as high as it was, we are still seeing an increased payout based upon the current value of SBDs on the market.
The witnesses are trying to contain this by adjusting more of the payout to STEEM. Author rewards are no longer 50/50 since there is another component to the compensation.
There are many reasons on both sides of the debate as to regarding SBD pricing. One issue I have not seen raised is the fact that higher increase in SBD pricing means that those who are powering up can do so quicker.
How does this affect the distribution?
My view is this: the larger accounts simply cannot post enough content to keep pace with what the smaller accounts are putting up each day. As a percentage, they fall behind. The number of smaller accounts creating content simply overwhelms the larger accounts. This is why we see a continual and consistent shift in distribution. Having accounts power up quicker only favors the smaller accounts since they are taking a bigger and bigger share of the daily reward pool.
Another aspect to this is an increase in SBD pricing means the payouts can get a bit ridiculous. While many view this as a problem, I see this also aiding in the distribution effort. Many of the larger accounts used the payouts to cash out. This is especially true of the investors. They were able to reduce their risk by taking large sums of money out. In other words, they did not opt to power up since they are already sitting on a great deal of power.
Who powered up?
Dolphins, Minnows, and Planktons.
Those were the people who took advantage of the increased payouts.
In my mind, we have an issue many feel is a major problem and the solution was right in front of us, yet others view that as detrimental. I am not trying to stimulate a SBD discussion since those are all over this platform. My point is that one of the major drawbacks to the STEEM blockchain, the unequal distribution of SP, was being addressed simply through the increased price in SBD.
For a period of time, having that at an increased level could actually help the overall ecosystem.
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You are one of the few who understands the design of steem and steemit machine. Great explanation.
Just following the numbers....something few seem to want to ignore.
It is hard to explain anything using a correlation to high SBD because SBD price has been tightly correlated to Steem price. It may be that high Steem price is what encourages that behavior. We can't say definitively.
I don't understand why they are doing this. In my view, the Steem community should do everything it can to inflate the value of SBD and give everyone higher payouts.
100% SBD payouts would help keep SBD closer pegged to $1. Fixing the promoted tab would inflate SBD price. I've tried to think of other services Steem could offer that would burn SBD like promoted, but I'm coming up short.
Also, I'm one of those minnows that has powered up everything. I haven't transferred a single cent off the chain.
Something about a 5% SBD to STEEM ratio.
The fact that SBD is debt concerns people....too much debt could take down the entire ecosystem...that is why they do not want more SBD created...or at least contain it.
My view is if the price of STEEM can easily cover it, that is what is important.
For example, 1M SBD at 50 cent STEEM means 2M STEEM is required to cover the debt.
But 5M SBD at $5 STEEM means only 1M STEEM required to cover the debt.
The system is actually stronger in case #2.
I guess it's just not very clear how SBD is debt and how high debt could take down the system.
It is obvious that SBD is supposed to be pegged to $1, in that context printing more makes sense.
Also, if people are worried about SBD debt then we should be thinking of anyway we can to get rid of it. At the same time we should be wondering why it's value is so high when it's supposed to be $1.
Thanks for that explaination of the way that high SBD is helping the system at this time.
Nice overview of the whole Steem/Sbd situation! I arrived a bit late to the whole pump of sbd but i've still managed to grow a bit and enjoy the platform :-D
That might be a solution, a higher SBD price, instead of it being pegged to any currency. I think the STEEM blockchain is rather interesting, with both STEEM and SBD. It makes it hard to understand, but also might help to stabilize and grow the blockchain in the long run.
Good point of view, I somehow agree
Just like everyone bought we would never move to credit card and plastic. People believe we aren’t moving to tokens. The movement is happening, the reasons and applications that we don’t fully understand yet WILL COME.
STEEM is one of these with a good product.
A love you bring this perspective to the table and have a wonderful Sunday :)