My perspective on the value of Steem Power

in steem •  last year

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Why does anyone want Steem Power? What gives Steem Power it's value?

I'm going to list all the reasons I can think of;

Capital appreciation - over time, the value of Steem may rise.

Security - Steem Power can only be divested over three months. If your account is compromised, it takes time to plunder your Steem Power holdings, time for you to notice and take steps.

Social capital - the more Steem Power you have, the more opportunities you have for growing social capital (building trust and a network among people.)

Delegation of economic potential - holdings of Steem Power can be used to fuel the activities of others connected to the Steem network/economy. Steem Power is literally capable of building anything you can think of and influencing the world around you in a direction you want.

Protection from Steem inflation - there is a small amount of inflation currently built into the steem economy which provides the reward pool. Steem Power holders are collectively awarded some of the supply inflation in order to protect them over Steem holders. Steem holders pay the price for liquidity.

Author & curation reward influence - the more Steem Power an account has, the greater the influence over the distribution of the Steem reward pool, content choices of authors, content visibility and the ability to self-reward.

Steem community culture development influence - the economic incentive system within steem grants Steem Power holders the influence required to craft culture, though abusive cultures can only go so far without push back.

All of the reasons listed have the potential to make or save money but there are only a couple that are likely to be considered by investors when calculating return on investment. These are;

Capital appreciation

Author & curation reward influence

Waiting for capital appreciation is a big risk. If there is a means to utilise investment holdings during the wait by taking from the reward pool that are a part of the rules of the system and potentially a reason for investment in the first place, it's going to happen. It reduces risk, it's only sensible. However, Steemit (the flagship Steem app which is most closely tied to the success of Steem) is in beta and the overall goal is mass adoption. I believe it is in the interests of Steem Power holders to re-examine the Steem Power value proposition entirely.

For instance, if the other reasons for holding Steem Power are given precedence over author & curation reward influence, certainly where self voting is concerned, ultimately ROI will be far greater. The question is, are there people out there prepared to hold Steem Power for reasons other than self-voting rewards? I believe there are. I do not self -vote and haven't been for some time. I would love to build a Steem Power stake into the millions, but why?

The capital appreciation is a great enough financial incentive alone. All the other reason are very compelling too, but I consider the most important, the absolute jewel in the crown to be the delegation of economic potential. That is the one that has the potential to change everything and all other reasons beside capital appreciation, pale in comparison.

Ok, providing money for people and projects and things, that's nothing new. Correct. But Steem is new, very new and with the utility, scope and potential to transform everything. Steem Power is the power to transform anything and everything at a global level. Very, very valuable stuff indeed.

So all I'm saying is that the value of Steem Power is a matter of perspective, there are plenty of visionaries out there who will crave Steem Power and we should never stop the debates and innovation around the economic incentives.....particularly at this stage. The structure must incentivise everyone and perception matters a great deal. Please consider that when you consider your Steem Power.


Happy Steeming

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This post received a 3.9% upvote from @randowhale thanks to @clintjunior! For more information, click here!

I want to accumulate SteemPower more and more and just power down little by little when pays me enough to keep posting content, helping some people that have needs like in Africa, Venezuela and others poor countries. I love Steemit, think is a Disruptive technology that will change people lives for better, is already doing this :-)

I read the current annual inflation for steem is between 9-10% per year.

There seems to be an extreme myopic perspective regarding self upvoting.

First, anytime anyone votes on one of my posts or comments, I increase their payout when I return and upvote my own post or comment. By doing this manually, just before voting closes, I forfeit all or most of the curation payout because of built-in payout curves.

Secondly, because I actively vote, I need more SP. The system allows me to build SP via a self-upvote. It works against the community for me to be negligent in building SP.

I'm also looking forward to the day when I have enough SP to delegate to community members.

Equally important, when anyone powers down SP and then uses Steem to make a purchase (of goods or services) or makes a Steem donation within the Steemit community, it increases the value of Steem.

Steem that is moved from community member to community member has a better chance of staying inside the Steem economy if it has benefits to the new holder as SP. Removing the stigma of the self-upvote would increase the value of Steem as SP and keep Steem in a strong internal economy.

Basically, anything that removes STEEM's dependence on the USD, or other currencies of any type, to provide value to the community is a good thing.

Markets whereby we can buy and sell real world goods and services with Steem is one way to give Steem real world value. The markets give people incentive to trade Steem within the Steem economy.

Providing extra incentive via the self-upvote can keep Steem in the Steemit economy and community even longer.

All of these community benefits and personal incentives increase as a member's SP increases.

The community benefits much more when we have more dolphins handing out more nice-sized votes but as the dolphin grows, they reach a point of personal negligence if that are not investing wisely.

The self-upvote is one way to keep Steem in their investment portfolio. This improves the likelihood that they will keep engaging in the community, keep handing out upvotes, and keep allotting delegated SP.

I feel like it should be obvious that self-upvoting is an incredible benefit to the community.

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I'm sorry but I disagree completely. Self upvoting changes the nature of perception to those without Steem power, the majority. The holders of Steem power are absolutely tiny in comparison to the population of the planet.....the target for adoption. Self upvoting drains the precious reward pool when instead it could be going to excellent minnow authors or commentators. The best mechanism for distributing Steem is through rewards for quality posting. That is the purpose of Steemit.

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The best mechanism for distributing Steem is through rewards for quality posting. That is the purpose of Steemit.

It should be like this, but in the current situation, it's not. I would encourage self voting for 2 reasons.

  1. The price of steem depends on the demand. The demand depends on the value. Steem for itself doesn't have any value. Nobody buys Steem power to put in his china closet. The only reason people buy steem is the ROI. If self-voting is nulled - than there is no reason for most users to own SP. And as so the price of Steem will crash.
  2. People are leasing steempower from @minnowbooster. How are they supposed to get back their investment?

Now in a related subject: People are against self-voting, but in the same time they have no problem with paid voting bots like @randowhale @booster @bellyrub etc. I think that all these bots are kind of self voting. Instead of upvoting their own accounts, they get paid to upvote other accounts. So they are draining the rewards pool for their benefit of getting paid.
What's a difference if I upvote my account to get paid from the pool, or to upvote someone else's account and get paid from that person and I use the public pool rewards to get rewarded?
I already wrote a post how a fixed Steemit should look like: https://steemit.com/steemit/@emble/will-steem-succeed-or-commit-suicide

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I'm selling my STEEM because many people are against self-voting. I bought STEEM (with real money) just for that and all I got is endless flags. Now it's a little different because my voting power is not that big anymore. Anyway I'm leaving STEEM for all hypocrites who did not buy any STEEM.

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Are you talking about demand for Steem in the short or long term. In the short term, I couldn't care less if weaker hands distributed their Steem, in fact it would speed up the process and make for a better distribution! ;)

I've got nothing against minnowbooster at all but it exists to profit doesn't it. If it does and the situation changes for the better for the majority and that happens to close an exploit or means of support, well that's what innovation is for.

I don't use bot self upvoting. If they were a service without profit, that would be better but there is no relation to quality in the use obviously. I see these initiatives as a search for ROI. Have some Minnows been helped? I think so.

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The best mechanism for distributing Steem is through rewards for quality posting. That is the purpose of Steemit.

Unless this is corrected, self-upvoting should not be eliminated.

I agree only stacking for appreciation can be risky for investors. Due to sheer nature of cryptocurreny, they fluctuates a lot on tiny incidents. Investors/traders who are in for short-term, powering up STEEM can be painful since they cannot play along with Market. However, in long term it can be a different issue.

In Recent BTC's up-trending and ascending to $3500, STEEM seems to be lagging in big way or, having some negative perspective issue with investors since it is actually down to $1.16 while most of the top cryptos are ascending with BTC. I wonder if it is due to @dan powerdowning big number of STEEMs, concern on scalability, STEEM fork- calibrae, or recent downvoting and in-fighting among whales. I hope STEEM come back from this SLACK and have a positive correction i.e. at BTC $3500, STEEM could be $3.

For self-vote, I would put the discretion to the owner. It takes precious time to read article and create intelligent comment. Just waiting on gracious peers to vote up or, sheer luck of visibility can be discouraging. If the writer thinks that he have put quite significant effort on writing or commenting, I don't see guilt in upvoting. However, self-upvoting in the purpose of self-voting with silly or generic comment should be deal with loathing. However, we can't stop people from manipulating the system in a decentralized world , we can make the system better to discourage or stop such behaviors.

It's 13 weeks to fully power down ;0)

I agree with the above, there are many good reasons you have outlined to gain steempower particularly if you are invested in steemit.

Steem itself is an incredibly versatile currency and the wallet onsite a very safe option to hold it in. I think steem will gain in value over time as people are made more aware of the platform and the no cost aspect of steem transactions

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I totally agree with you about steem's versatility. It certainly seems capable of underpinning an economy.

steemit will evolve into something powerful because it's got such a awesome community

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The community forming around Steem is definitely where the value lies.

This is a very good post about steem power and its importance in our steem ecosystem. Thanks a lot for this.

Due to your hardwork here and top quality posts which are undervalued, I hereby add you in my steemvoter.com (after reaching a mile stone) in order to better send in my support to your good work and quality posts...keep it up and more success.

Ok I am trying to digest all of this. The comments, too. I am confused why self voting is an issue. Yes I read all the dialog here, maybe I need like an explination like I was 4 years old.... I currently get half my payout in steem power and half in sbd. Is this the best method? Also, I thought it took 2 years to power down. Is there a place to go to get info like that easily?

Well done your post is very interesting i like your blog thank for sharing

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My pleasure, thank you.

@benjojo, your post gave me a new perspective of SP. My knowledge was limited to its influence & weightage for Author & Citation rewards and of course for capital appreciation. I foresee steem scaling much greater heights in coming days and when that happens I see my capital soaring.
Thanks for a very insightful post.

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Thank you for the support. I'm very glad I could help.

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@benjojo it's author & curation not citation. My autocorrect has gone bonkers and my bad, I posted without checking.

I have not read an explanation of Steem Power quite like this...it's broken down and easy to understand. It has given me a lot to consider, and I thank you for that!

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My pleasure.

Soon we see steem up 3.10$

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YOur predition came true.

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:))) Ah and more :)))

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whooooaaaaa , and more? wow lol.

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Wow thank you for your information!

What I don't understand is how steem is losing value, I think around 18% in the last month. We are gaining tons of users, other cryptos are gaining value and yet value is dropping.

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I do not understand that either. I am wondering is it because it is growing too fast with all the new people joining Steemit.

This was a good read on Steem Power. It showed me a few things that maybe I myself my have over looked. Steem at the moment is just that slow, easy grind that very slowly over time rewards you for the things you put it.

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I'm very happy you got something from it.

@benjojo I am so new to thinking along the line of long term investing but love this community and am willing to invest in it for the long term, can you answer a few questions I have about it all? Sharing this for others who also have questions.

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I'll answer any questions I can for you, of course.

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Can you take a look at my wallet and tell me the steps I need to do to invest in this community?

At this point I'm all about steem power . After about 6 months of building up a head of STEEM I'll re-assess the situation .

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Sounds like a good plan! :)

Good post. Thank you for shearing this post

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No worries, thank you.

Thanks for this post, I'll have to revisit it to chew on it a bit too.

My understanding about the whole economy of steemit, actual cryptos too, has been on the caveman level.

Mmm steem power good.

So I've powered up everything I've made here in my two months. I figured if I got enough to make a difference I'd figure out how to use it best.

Posts like these are helpful.

Steem Power can only be divested over three weeks.

3 weeks? I thought 3 months

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Quite right! Edited! And thank you.

A very interesting perspective. Being relatively new to the platform I hadn't considered many of the ideas you propose.
I have never taken anything from my wallet and currently have no intention of doing so, the power to uplift others in the way others have done for me is one I cherish and that is why I intend to leave it there and let it grow.
I may be naive but I believe in Steemit and its potential and really hope that the Platform evolves in a positive way.
Thanks for sharing your insights buddy.

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I don't think it is naive to recognise potential in Steem. Far from it. I think Steem will explode in value once a few adjustments are made.

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@benjojo, Your ability to keep up with all of the flow of comments is a full time job in itself!

Very interesting read. Thanks for sharing cause i'm new to this community and still learning stuff.

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I'm very happy to help!

I'm just a little minnow. My SP is at 58.872, I want to make sure I understand what you are saying @benjojo, as a minnow it's ok to upvote myself that 1 cent my upvote is worth but as someone with substantial SP who could easily upvote say $25 or more, then my SP would be better spent in the community by upvoting good content of steemians who are adding value to the community?

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I'm a dolphin. I think, for minnows, upvoting yourself is not a big problem, but you don't get much reward for it either.
Self-upvotes is a bigger problem once your SP builds up.
So, maybe get into the habbit of using your upvotes to build community instead.

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What level do you have to be at to be considered a dolphin @eturnerx? I'm still very new to all this, I've only been here just over 2 months.

The thing I wonder is, if even as a minnow upvoting your own post is a bad thing, why do the devs even give us the button to make that an option when we create a post? I know I would have had a post or two with 0 pay out if it wasn't for my autoupvote and my wife's upvote. 2 cents is better than nothing and honestly that kitten play fighting video I did should have earned alot more. I mean who doesn't love kittens?

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Dunno. But, as an arbitrary measure, I think dolphinhood is about 1,000SP with 500 followers.
Consider checking out @minnowsupport project (MSP). Also, throw some SBD at the upvote bots where they give more value than they cost.

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See I can't really do that @eturnerx. I just left a comment yesterday on @charliefuchs post about people begging for follows and upvotes and I said this

"The goal is for the community to produce good content and be paid for that content. If someone can transfer SBD to a bot account and then their posts get auto upvoted it defeats the purpose of the community producing good content for the community. I would rather take a slow and steady growth by gaining real followers and real upvotes than to pay for upvotes.

Now I have nothing against voting trails, because in my experience the voting trail has come from a certain individual (pp are his initials) upvoting my post. That I am ok with because an actual person initiated that. That's just my 2 cents, well 1 cent in my case."

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I can appreciate your reasoning. Quality content is what I'm here for too. Something to consider: Your voting power has value. Your SBD has value. In terms of you spending your value on self promotion, what's the difference between a self-upvote and a bot upvote?

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A self upvote is like having self-esteem, you are proud of your own work and accomplishments. People respond positively to those who have confidence and self-esteem.

A bot upvote is a cold, lifeless, emotionless digital entity doing what it was programmed to do.

There is no esteem in a machine. There is no sense of pride and honor in a machine. There is no way for a machine to recognize and truly appreciate the effort or lack of effort an individual puts in to a post.

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So, pride for a post enough to spend value worth pennies (self-vote), but not pride enough to spend value worth an SBD or two (bot-vote)?
The bots are cold-emotionless machines that lack judgement but they only act on instruction from us.

thanks for the insight!

If the Steem token rises to $10.00 per token on the open market, does my Steem Power rise in value as well when I choose to power down? For example, if I have $3,000 of Steem Power and I choose to power down over 13 months and the Steem token rises from $1.30 to $10.00, will I have more than $3,000 on the open market assuming the price of the token keeps rising?

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Yes. SP coverts to STEEM on a one for one basis.

i dont know what to type to reply ... you were right

I'd just like to say that I have been asking myself these questions for the past couple days. I am new to Steemit and wanting to learn about the system fast. It is a bit confusing to beginners exactly how SP works but I think this post shed a lot of light on the issue.

I'm resteeming for any other newbies who follow me.

THANKS!!!

This posting provide info about Steem Power and it possibility and benefit...
It is a very good posting to newbie as me...

Very interesting

in short, save all your sbd and steem and convert it to Steem Power. :-D

The vote slider is what does it for me. ;-)

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A very useful feature!

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Yes indeed! This is my first week using it, and I love it.

Hi @benjojo, i have write you in steemit.chat.
please check it.

new to this, not much to say, but thank u for sharing ur insights with new users, im sure many will benefit from this post :-)

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I hope so, it's my pleasure.

Is this the post you were working on when we spoke the other day? I feel like there is more you want to say about what you want to do with so much sp ;-)

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Oh there's more alright ;)

This is a great post @benjojo. Since i actively started using steemit, which is only barely 2 weeks, even though i have had this account since july 2016 (wish i had caught on then, i'd be in a better place now hehehehe), i have been craving for steem power, as i see it as the means by which i can greatly help improve adoption of steemit by newbies i keep introducing daily to steemit, without proper care and adequate provision of food for minnows, little minnows would just die off as quickly as they were born...

So i conceived the project i could do, which i have seen many others do successfully on steemit, to help minnows (i am one myself).

So coming across your post, has got me really fired up for more steem power, you make it easy for one to understand the inherent value in steem power and why it is needful to accumulate it like Adam Smith's "wealth of nations".

Thank for your insight into this undervalued topic.

steem on: power up!

Support the #naijaminnows project

Really good post. I love being on steemit and being part of the community it helps to create. The rest is just icing on the cake. That will come soon enough. 🐓🐓

You are a very noble man. I have known that since I first met you on here a year ish ago.
One of the best reasons to hold SteemPower is that if everyone were holding it instead of cashing it out then it would increase the value of $teem dramatically. Plus in the meantime we can use the SP to support horrible people and or projects plus potentially pay ones self with self voting.

Yes as you said, the potential for revolutionary transformation to come because of a platform like Steemit is potentially to some priceless~*~

I'll follow you. and follow me.

Thanks for the post @benjojo I have been thinking of putting some more SP onto my account and its nice to know what the extra risks are.

I know better now about steempower thanks @benjojo