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RE: Steemit Education Programme - What are Vests?
Vests are shares in the Steem Power Fund. If a user takes no action on the >Steemit Platform, his/her shares will remain static in quantity, just like >shares in a financial fund.
Your "shares" stay the same, but if more people are joining fund grows bigger and your actual"share" of the fund is diluted. So your SP is diluted if you do nothing and if marketcap does not grow people actually lose money on SP. I think a lot of people do not understand this part.
No, this is not correct.
Your shares (VESTs) stay the same and if more people join, they add STEEM to the fund at the same time as they receive new shares (VESTs) so you don't get diluted.
Much needed info here thnx for the clarification lots of conflicting info here.
You have just described share dilution!
https://www.investopedia.com/terms/d/dilution.asp
Not exactly
Hello from EOSYS BP Candidancy.
Actually wondering about is it possible to fixing the Dan Larimer fan bot.
Because there are several group he joined and talk active.
like (https://t.me/EOSGov,https://t.me/BPInfrastructure,https://t.me/jungletestnet)
also if it is open-source tool, can we use that code :"
I think the definition of share dilution is a bit too general.
[...] making each share less valuable.
The above last part should not be there or should at least not be there in such a definite form. A less definite form could be:
[...] sometimes making each share less valuable.
In conclusion, I would agree there is no value dilution because of the market cap increase due to the STEEM added to the fund, but there is definitely some share dilution because the following part of the definition still stands:
When the number of shares outstanding increases, each existing stockholder owns a smaller, or diluted, percentage of the company [...]
Very interesting to know. Thanks !
damn 1$ for a single upvote?
thats pretty neat.
GIVE FREE UPVOTES.
sorry. (not sorry)
You pointed out something.... Thanks
is this still the case?
No, it is not
One tricky question : When more people join the fund, doesn't it imply that market cap would be increasing because to join the fund you need to buy steam first ???
I think it will do. It will contribute in mining of steem. FYKI 'steam' should be 'steem'. Thanks.