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RE: Did Steemit Inc have to act by law?
Not directly connected to this post but is, kinda, sorta....
If the daily reward pool is manipulated by big stakeholders to maximize their returns, and in doing so, reducing the rewards to others by their own actions..(going back in the pool for redistribution)
...does this then take it into the realms of market rigging and unjust acquisition...?
It's something that might need to be addressed at some point, in the legal sense...
It isn't rigged, it is coded in. It is part of the Blockchain so investors would know that coming in, just like all the people have been happily making money while steemit Inc held for 3 years.
It was just something that popped into my head when I was reading something about the fraud and graft pre US depression...
'coded in' doesn't make it legal..
At this point I don't think there is a concern considering there is no manipulation, stake has draw on the pool, 1:1
How so...?
The system of steem, (in theory)
With flagging and downvoting....
If a system can be gamed, it will be by some bad actors..
Where am I wrong in my diagrams?
This why big player down voting with bots is done without concern - as long as it goes back into the pot, the rewards will favor the bigger player??
Anything that returns other people up votes back into the pot, is a win for big players..
THAT is manipulation..
Your diagram is wrong. No whale can flag everyone and what is flagged is miniscule in comparison to what is not, they have 10x flags a day. The pool is still accessible by everyone. Most value of the pool goes to small users - I think @taskmaster4450 might have numbers on this. What goes into the pool is distributed by stake. There is 870k Steem in the pool today. The largest whales have votes of something like 50 Steem a vote. Most whales do not flag very much at all.
Your diagram is a misrepresentation by omission of complexity and numbers.
Edit: also, if the large actor is flagging, to draw from the pool they will also need to get voted significantly to get any gains, however slight those gains may be. After they flag everyone indiscriminately, who is voting for them? How are they going to draw from the pool more than what they would get from upcoming themselves or selling their vote. Flagging to gain from a larger pool is the most ridiculous way of trying to maximize earnings.
...they do it all the time!
As for manipulation - bid bots are in there too - if all they are doing is taking up votes and redistributing, surely (and making profit).
Irrelevant of the numbers involved, it's a dynamic that would be surely counted as illegal (manipulations of financial markets if it was seen as money), or something dodgy - I could guarantee a lawyer could come up with something...
I wonder if that 'loophole' has had any influence on the lack of growth..(I dunno, just putting it out there...)
We know big people have hundreds of small accounts (thousands)...so...
You are still missing the point. someone has to upvote them.
the same people who own the big account...? It's all from one rewards pool, it about being able to decide how the reward pool is distributed.
if the steem is classed as money or security/asset (something of value), then being able - and doing - these actions - would be seriously illegal.
let me get in touch with someone. (haven' t spoken to in years, so I'll try to anyway).
If an upvote is giving a reward, than a downvote it taking it away..you can't have it both ways.
https://steemit.com/bidbots/@krnel/bidbot-power-on-the-rise
.....this is financial manipulation.
I am now forced into actually understanding steem! bollocks. Iol
(this stuff doesn't naturally 'attract my attention')
.....I think your missing the point...focusing on the mechanics doesn't alter the principles..
https://steemit.com/about.html
From elipowell - MD of steeminc's
This would (imo) , state categorically that steem is money...
IF this is the case, legally speaking, then using bid bots or down voting would be a financially manipulative action...
SHIIIIIIIIT, we're criminals, outlaws !! lolol
..I think..