You are viewing a single comment's thread from:
RE: STEEM(IT) Distribution - Rebuttal to @sigmajin ‘Cooking the Books’ Claim..
I'm fairly new to steem so I wasn't aware of just how high the current dilution rate is, but .9% per day is extreme. My estimated account value is $1682, which means I need to generate ~$15 of content per day between curating and authoring just to break even? And I was thinking of powering up a significantly higher amount, but this is now dissuading me.
Today I spent 6 hours writing 2 thoughtful blogs that have a total of $1.24 in rewards and curating receives <$1 for a full day. I imagine many others are in the same boat. Without lucky upvotes it seems contributing to the platform is untenable.
Yes, dilution rate will fall significantly after about 9 months. Daut44, you should look at it like this: Steem power (vests) are shares in the company. With new people arriving (people creating posts and curating), 1 new share are issued to them, but old shareholders get protection from this by receiving 9 shares on top of that. That way you are diluted by less than 10 % a year (after 9 months) if you post nothing. Currently you are diluted more, so you should be more active next 9 months
But realize that even though you only made $1.24, you also most likely gained followers who can can increase the value of your future posts if you take the time and continue to create great content.
At the same time, even with dilution, you have made far more than the time poured into all social media sites combined (I am guessing).
All you get on Steem is a chance to be rewarded, not a guarantee. Please refer me to a platform which will pay you more than $1.24 for "writing 2 thoughtful blogs".
I think you mean "refer me to a platform which will pay you more than a negative amount of money after dilution is accounted for" for writing 5000+ words. and the answer to that is "all of them".
Your logic is faulty. Dilution does not not imply that you pay for posting. Anyway, 50% of your payout is not diluted.
Also, let's assume we had no dilution. Who is supposed to pay for your blog posts? You expect to be paid but you are not willing to take the consequence of the need to pay others as well.
Steem is not a magic box which just pays everybody who shows up. All that Steem does is constantly redistribute funds from those who contribute less to those who contribute more.
Replied to this below, but basically I was unclear on what my frustration was: that investing before building a following is a mistake here due to dilution hurting heavily invested people more and a lack of a following makes it so paying off "break even rewards" is harder.
I fully understand that steem needs to be mined/witnessed to pay for blogs and this causes the dilution, but the distribution of them is disproportionate to effort and following and the "upper middle class" investors are the ones currently struggling. The saving grace is, as @hisnameisolllie said in the parent post, the distribution of wealth will drastically change due to the dilution rates.
Dilution doesn't mean you lose money. That is down to the Price of Steem, which is speculative. Every 'startup investor' experiences high levels of dilution from the outset, but that doesn't mean they are losing money,... it doesn't matter if the share price is going up. All your 'losing' is %ownership...
I understand, and forgive me for being unclear, but my main objection was with investing actually having negative effects with respect to dilution. For instance, say someone made a steemit account, started posting content, created a following, and built up a bankroll from his following consistently upvoting his articles. Now he can easily offset dilution rates by working moderate amounts: he creates content and enough of his followers upvote it to make it worth his while putting his limited amount of time towards article writing and blogging. And before he built a following, he had a small amount on the site so he was able to meet his break even requirement easier.
Meanwhile, an investor who has no following powers up a significant amount of money without a prior on site following, so no matter how much effort, formatting, and insight go into his posts, he may not receive the attention necessary to pay off the time spent working on his content.
My frustration is with investing being punished due to a lack of a grass roots buildup before investing. And I'm glad this subthread discussion happened before I powered up 5+ figures into the site because, ignoring steem price fluctuations, I would be diluting faster than my content can be upvoted.
@daut44 Bear in mind that, as a Steem Power holder, you will recieve 90% of the Dillution back as a reward for your long term commitment, Also, this Dillution rate is falling at a significant rate. In 12 months it will be around 0.18% per day.
If you check out my Steem Distribution Post (link at the bottom of this Parent Post), it is explained...
I agree with you. This is problem. I think the thing bots. Bots vote for the popular and rich. And the poor have no choice.