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RE: HF21: SPS and EIP Explained
this a bear market, the low of 40 cents is alot higher than the lows of 2016. For steem to work it needs investors and believers. Authors are the ones who dump steem because they are effectively working and need paying. I believe the Hardfork encourages more of an investment mindset which is crucial for the steem price and ecosystem long term. It is not broken it is a bear market and we ride it out with every other alt coin.
Less than ~10% of rewards are received by creators. @arcange publishes daily statistics that reveal the exact numbers, and my last check showed the median payout was .01 SBD (median = what most people receive), yet the average payout was ~15 times that. That is because the vast majority of rewards are paid out to 35 whales, not the rest of us. Their few posts and comments receive ~90% of payouts from the rewards pool, about a third of that from bidbots. The below chart is almost two years old, and despite repeated requests for a current updated chart, I have been unable to get one. The authors have changed, but the curve is practically unchanged.
It is not creators that impact the price of Steem, because they hardly get any of it. It is profiteers, manipulating rewards by their substantial stake weight, that extract almost all the value of the economic activity on Steem, and prevent capital gains from ever impacting the price of Steem - because that value is instead diverted to their wallets as tokens, rather than raising the price of tokens.
Check @arcange's latest post for the most recent relevant statistics.
He said relative market valuation and he's absolutely right. In the crypto market, which as a whole has indeed been in a bear market, Steem has dropped from top 10 to top 20 to now barely holding on in the top 70 (!). Some of that is due to promising new projects which took their spots in the high ranks, but mostly it is due to being much lower than projects which Steem used to considerably out-rank.
Blaming Steem's relative performance on the bear market is way off base. This is mostly on us.
dude, every single altcoin is in the gutter. Every single one except BNB and litecoin. He is not right, he is twisting my words to suit his own argument. I said steem is higher now and holding on to 40 cents which is way above the 0.03 cents of the lows in 2016. Thats all the matters nothing else, when Bitcoin tops 20k Steem will scream back up to 3 and 4 dollars. People dont understand crypto, fundamentals have got nothing to do with it. Its all relative, when one coin makes a run for it and hits a crazy price everyone says well if that xyzzy coin can be that much then every other worthless coin can be worth more too. That all feeds into itself and the casino and hype becomes alive again. I laugh when people talk about marketing and this and that, its a joke. Nobody uses this stuff yet its not happening like we thought it would its all speculation, all of it, fuelled by hot money coming out of nowhere. Slagging off steem and people saying its doomed does not help though i agree but it makes no real difference, because when it all kicks off again steem will be the best thing since sliced bread until the bear market attacks again.
Yeah and at least 50 of them have STILL managed to outperform Steem.
Stop making excuses.
Most of the Authors can not hurt the price. The dumping comes from above.
Much of the stake is not being allocated to create value at all. It is a difference in opinion on what brings value.
The eyes of the community cannot support all of the dumping, but it is mathmatically impossible for the dumping to come from most authors. The witnesses also sell to pay expenses.
Although I am not a fan of how they are approaching this, I do hope it teaches people why it is important to fight abuse. We can't change SteemIt Inc's selling, but do we have to support self voting, bot abuse etc? If people learn to downvote maybe not.
By the way I agree the funding of the SPS should have come out equally, it does need to be funded.
Agree and disagree. Yes "most authors" purely counting numbers can't hurt the price because their earnings are tiny. But the reward pool in the aggregate is responsible for a large portion of the selling pressure, in that it totals about 17 million STEEM per year, far more than what even Steemit is selling (about 9.6 million per year).
Not 100% of the reward pool is sold immediately but a very significant piece is, and of that which isn't sold immediately, a lot of that ends up being sold somewhat later anyway.
17 million STEEM/y is important, it is a big challenge to find enough investors to float that selling, and we need to be very careful to make sure it is used effectively.
You are under the assumption that the stakeholders and witnesses are better at directing it at places that add value. Based on the distribution and the last 3 years, I disagree.
It is not the tiny users that have run down the price and run end users off. They just don't have the power or the stake.
You and I both remember the original distribution. Any changes in that are a result of large stakeholder selling and small accounts buying or holding.
My view is that the mechanism which has been used for that for the last 3 years has been severely flawed and these new mechanisms are much better, especially the SPS mechanism which apparently (I say because I have no personal experience but I believe those who claim it) has a track record of working well on Bitshares.
IMO with the exception of Steemit nearly all large stakeholders selling from the original distribution has long since occurred. What is left of the original distribution, people have mostly decided to keep long term (there may always be exceptions and people may always change their minds, but it isn't a constant flow of selling). And remember, in the original distribution Steemit had 80% and everyone else shared 20%.
But numerically the inflation paid out to content rewards matters a lot. It is more than the rate at which Steemit is selling, most probably higher than the net rate at which all whales, Steemit included, are selling
To be clear, this does not mean content rewards going to minnows. Most of it goes out at the top. But we also can't micromanage where it goes. Maybe with better mechanisms we can have some chance of managing it at effectively all.