Another article on Live Debate
What I have found interesting and that actually delights me is that @modprobe posted a review on the live debate about steemit. I would have wanted to write a review as well, but modprobe was way quicker than me, and with his quality review he deserved the rewards he had received.
The nice thing about this is that I realize that competition is starting to exist on Steemit. Competition not only based on quality/creative blogging, but now timing has become an important role as well. The article that gets posted first will have a first mover’s advantage. I consider this as a healthy sign for the growth of Steemit.
But let’s go back to the debate. There were still a few things not clearly explained. Hopefully anyone can elaborate on giving additional information on this.
1) Tone Vayes mentions that the white paper states that Steemit multiplies the steem supply by approximately 100% per year. In the white paper I have found:
Strangely when looking to my personal wallet and keeping track of the growth of steem power I see an increase of 0.7 percent steem power per day. When calculating it per year, It’s 1.007^365 = 12.75 multiplication per year.
2) Then I also have a question about powering down. The white paper states:
If it takes 104 weeks to exchange steem power to steem, doesn’t this mean that weekly around 1 percent get exchanged back to steem? But in the meanwhile weekly power up adds 0,7 x 7 = 4,9% of steems to our steem power. If 4,9 percent is higher than 1 percent, doesn’t this mean that the accumulation of steem power is higher than what is transferred back to steem?
If my calculation is correct, why is steemit doing it? Is it because the supply at the moment is too low when anticipated for future outlook?
Hoping for any good answers.
Thanks
Thanks for the kind words. :)
Hello @modprobe!
Yes. You really did a convincing job commenting on the video.
May I ask you what your thoughts are on the steem supply?
Specifically the rate of dilution?
Yes. The rate of dilution and the discrepancy with the explanation in the white paper.
Eh, whitepapers are made to be outdated. :P The only real spec is the code.
As to the rate of dilution, I don't have a problem with it. The effect it will have is to reward continued value creation at the expense of those who made large contributions (either of content or buy-in) and then started coasting. Their stake in the chain atrophies the longer they coast, while those who are actively working to make the community better and more valuable are rewarded.
I much prefer that over a system where 5 years down the road, we're all still dwarfed by whales who bought in when it was super cheap and never did anything since. The early contributions are still recognized, but they wane as new and continued value is created.
Hello @modprobe!
I also think the dilution rate is no problem. Eventually there will probably be a balanced supply and demand between content creators, and content consumers. That it causes inflation gives it an extra incentive for content creators to compete with each other producing consequently quality content.
Nevertheless it would be nice if Steemit would update the users about the outdated white paper. And give explanation of why they have choosen this decision. Transparancy is a key-factor of the blockchain, because S. Nakamoto knew transparancy and a fair system was necessary.
I'd stay Steemit is keeping people updated, but remember that they're a startup running an rapidly scaling website. They don't have a department dedicated to updating old documentation; they don't even have a person dedicated to it. All their people have other jobs. So I'd say they're doing a great job posting about changes as they get made.
If someone decided to maintain a living whitepaper that stays up-to-date with the latest changes, that would likely be a good way to create some value. :) I can think of a few ways to monetize that right off hand.
Aah Yes. That's actually a very good idea. :)
Too bad I noticed it a bit too late about the larger dilution rate. If I knew it, I wouldn't trade on steems. But would just have bought steems and turned it into steempower and focus on creating some content. But yeah,. Another unforeseen event in life
Hi! This post has a Flesch-Kincaid grade level of 6.3 and reading ease of 79%. This puts the writing level on par with Stephen King and Dan Brown.