The new Steem: RCs, Bidbots, Airdrops; and having and keeping cake

in steem •  7 months ago

Before we get into this, this is just based on my own understanding and speculation on a possible future. I have mentioned many times that Steem is like a game and is a lot like a choose your own adventure book with many potential paths. Each person chooses their own within the covers of possibility that is the Steem blockchain and its governing rules.

Let's go.

Steem power

As we all know, Steem power is what we use to vote with, it is our stake and access to the pool of Steem. Voting with it draws value equal to the vested interest and distributes it to the target that was voted upon. The voting use of it is now called, mana.

Resource Credits

RCs are the new addition to the Steem and are essentially tokens that allow users to move upon the blockchain. Each transaction uses some amount of resources and now each transaction is now precisely measured so that the processing cost is known. The more Steem power one has, the more RCs meaning, the more resource bandwidth is available.

50,000 Steem Power = ~100MM Resource Credits.

 

  • Currently, Steem Power can be use to earn in multiple ways, through voting and curation, selling votes to bidbots, selling delegations, voting on content that attracts airdrops and the like.

  • Currently, Resource Credits give access to transactions only. As we know, without enough Resource credits, people can't comment, post or vote.

New games

Where it gets interesting is that there has already been talk about there being a resource credit market where people may be able to lease their excess resource credits out so that other accounts can have access to the blockchain. This might be through a market place or, it could be through Resource Credit delegation to something like a Dapp.

This would allow a Dapp to onboard a large amount of users and without having Steem Power, still empower their new users to interact with the blockchain. This could potentially be done without the user understanding any of what is going o in the background. The user just signs up and starts using and earning either Steem or, an SMT.

But, RCs are only avilable to an account with active SP as far as I know. If an account delegates their SP to another account, they lose access to that value of RCs.

For example, an account with 10,000 SP will have 20MM resource credits.
If they delegate 5000 SP to another account, their resource credits drop to 10MM and the other account gains 10MM.

This stops double dipping.

Choices to make, RCs to play

Now, the current 'best' way to maximize profits on SP is to sell votes or delegation to the Bidbots for a return. Previously, one could delegate almost all SP to the bots to earn with and still have access, but as we saw after the Hardfork, those who delegated 'too much' were locked out with not enough Resource Credits.

And this is where it gets very interesting. Bidbots used to offer a passive income but it was costless because one could still interact with the chain while maximizing. Now however, there is a cost to move on the blockchain and that cost is in RCs that require Steem Power to possess.

So, the choice is that if one wants to maximze Steem Power earnings, one must forgo transacting on the blockchain. If one wants to still post, comment and earn via getting voted upon on the blockchain, one has to take a hybrid approach and leave enough Steem Power to have enough RCs to complete the moves. What is enough RC's, that depends on how one interacts.

Airdrop pressure

Now, as said bidbots used to offer passive income and still allow movement to earn in other areas but that double dipping is coming to somewhat of a close perhaps because if, there opens a market for RCs, it could offer not only more versatility but, more earning potential and revenue Streams.

I mentioned a couple of days ago that the Dapps could use their RCs to store account creation credits and then use it to empower their onboards so they aren't restricted by having zero or low Steem Power. What this means though is that there is a need for Resource Credits and, the supply of Credits is limited by how much stake is powered up. If everyone powers down, no one can act on the chain but, why would they when RCs can be leased?

As stated above, if I delegate/sell Steem Power to a bidbot I lose RCs but this doesn't work in reverse. I can 'potentially' lease/delegate RCs to the market to empower users but I *still keep my Mana, my voting power.

If I have 10,000 Steem Power and 20MM Resource credits, I may only need 5MM credits for my own needs. I can lease 15MM to the market and keep all of my 10,000 SP-strong mana to vote with.

This means I can earn on both simultaneously.

I can use my mana to vote on myself, earn curation, or vote on content like at @Steemhunt and earn curation and an additional SMT. I don't know how much Resource credits might be worth on the market but as more and more people come aboard, the more scarce it is as a resource so prices increase. This will also encourage more people to stay powered up or powering up rather than selling it on the market as they get it which should drive the price of Steem very high indeed.

Have your cake and eat it too?

Well, the bidbots can offer around a max of 90% return to delegators passively at the cost of not being able to vote and earn on curation. Now, that comes with an added cost of not being able to move if too much is delegated. But as I have explained, that is not the only potential cost as it also comes with the potential opportunity cost of being able to lease Resource Credits that would also allow active voting, earning possible SMTs and curation returns on top of the lease cost as well as, being able to be a valuable part of the community in some ways.

Depending on Resource credit pricing which will fluctuate on demand, it is going to likely empower users to not only lease their Resource credits but, actively be a part of the platform again in some way rather than only passively earning. RCs encourage engagement under this speculated model as it gives addition earning potential to those who have SP powered up and active.

If this happens, the bidbots might be in for some very stiff competition in the future because offering 90% return might not come close to covering the maximisers potential to earn by keeping their Steem Power active and using the Mana themselves. On top of this though, the introduction of models that reward curation on their platform with additional SMTs and only self-voting might not even be as profitable as curating other users. RCs are not a vote casting resource, they are access only.

The possible cycle

So, RCs require active (usable) Steem Power to possess and those RCs are needed to have the bandwidth interact. New users coming into the platform fresh have no RCs but will need them and could either by SP, lease RCs or have them potentially delegated to or the actions subsidized by the Dapps and the like. Being able to earn on RCs encourages powering up which means less on the market which should drive prices up. Higher prices meas more demand on the community itself which pushes more people onto Steem/SMTs which increases demand again.

Resource credit sellers/leasers still have active SP to vote with and are incentivized by potential SMT earning on votes as well as encouraging new users to earn from the pool and power up themselves which further restricts the market supply and pushes prices up again. The more successful the process is, the more successful the Dapps and SMTs are and that means that the more valuable the steem blockchain becomes.

What am I missing?

All conjecture

Now as I mentioned at the start, this is all my own speculation without fully understanding the technical details of RCs, markets or how future development is planned so some or potentially all of this might be a house of cards. However one looks at it though, the game has changed and it has changed at such a fundamental level that everything that has been planned prior needs to adjust, including us.

AS I envisage it at the moment however, RCs could be an absolutely brilliant addition to Steem (despite the birthing process) that drives decentralization through empowering Dapps and communities who can pool resources and handle onboarding activities, empower new users, reward those who power up, encourage active voting again, discourage vote selling, drive SMTs, limit market supply and make Steem very attractive to content producers and investors alike as prices will continually be pushed skyward.

IF...

If this works this way... are you ready?

Taraz
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I also think the possibility to delegate RCs (rather than sell it, or maybe both, since they regenerate) was intended from the beginning.

I remember a cryptic post of @ned from some time ago, with only three words in it #bandwidth-delegation-pools, and I think that's what he was hinting about.

I saw a few vehement reactions against such a possibility, considering Steem is complicated enough already. But I don't think anyone is forced to use such an added possibility, things can be kept less complicated and still use the DApps. Many use them to post, comment and vote without knowing much of anything else (or caring about it).

Personally, after the 10x adjustment, I have way too much unused RCs. Almost always at 100%, pretty much the same way as the bandwidth was before. I really don't need so much for my own account. Others do, but they might not want or have the resources to power up enough for their RCs needs. So a market for RCs seems logical to me.

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I remember a cryptic post of @ned from some time ago, with only three words in it #bandwidth-delegation-pools, and I think that's what he was hinting about.

Yep, this is coming in my view as well, it has to. There is no way that they will expect people to pay just to use in the long term. The basic membership will be signup and play. The premium is sign up, invest and start earning immediately.

I have been looking at it this way as well. The change has created additional flexibility and power to those that not only stake but also engage on the platform. I think that this could have a viable model to play with the excess RC as there will be a need for it as adoption increases and new users are added to the ecosystem with all of the different DApps being developed. I would even like the option to provide this new bandwidth free to help onboard users that remain true to the goal of engaging with the community.

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It is going to be massive.

Powering up means less Steem on the markets so Steem increases. Powering down means less RCs on the market so RC value increases. Make a choice :D

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LOL, that's a real dilemma then for speculators.

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pretty awesome game ;)

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A two edged way to earn money, should this idea be worked on.

That's a big IF and it depends on quite a lot. Am hoping it works as you say as the potential to work out well is there but....

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Not that big an if.

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just needs a market place and the setup to lease it :)

I like cake and I will eat it as well. That sounds very possible and way different to what I had thought. Yours sounds way better lol. It is a win win situation and everyone just needs to grow as quickly as they can.

One day I am going to come back and read this in its entirety TP. It is just too early in the morning for me to focus on RC strategies for RCs. But I'm sure you are right. SK.

Posted using Partiko Android

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There are some more wrinkles and opportunities but it was already getting too long :)

Well detailed and analyzed.

Truth be told, I never knew much about this new HF20 implemented despite how much I try. Am glad you were able to break it down for a lay man to understand.

#Gracious

Steemit Inc has certainly dropped hints about Resource Pools which seems to suggests that we’d be able to delegate/lease RC’s at some point in the future. Probably not much of a market for them now but if the number of users were to increase significantly after the rollout of SMT’s, there might be significant demand for RC’s.

Posted using Partiko iOS

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Probably not much of a market for them now but if the number of users were to increase significantly after the rollout of SMT’s, there might be significant demand for RC’s.

This isn't an overnight plan but there is potential here for this to be huge. Powering up puts pressure on the market supply, powering down puts pressure on the RC supply. sellers support holders either way i think... :D

I haven't got a clue what's what I here anymore, I'm hoping with times and patience i start till grab what this is all about but reading your post made me understand a little better about RCs l. I've been here just over 2 years and still find it so confusing.

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This is speculation but, everything will get clearer in the coming months I think.

Depending on Resource credit pricing which will fluctuate on demand, it is going to likely empower users to not only lease their Resource credits but, actively be a part of the platform again in some way rather than only passively earning.

That sounds like a great future. You make a number of nice points in this piece. I think you are likely correct.

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We'll all see how it goes but there is definitely more to it than what people are concerned with at the moment.

When the ability to rent / buy RCs directly comes the winners will be the Bidbots and the Whales. Whales delegate SP to the BidBots (like they do now) and collect vote selling revenue. The BidBots then lease or sell the massively accumulated RCs on their operating accounts (which under the old system would be unused bandwidth allocation) then send the proceeds back to Whales minus the typical commission for the BidBot managers.

We have unlocked a new revenue stream. Yay STEEM!

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I don't necessarily see it this way because it doesn't factor in the airdrops from SMTs. Some of course might do that but it is going to be less than it currently is. the more organic curators there are, the less demand for bidbots also. Plus, as Steem price increases the whales will slowly divest and in time, there will be a greater distribution with many many more having some SP in their account for things like moving and steem-ua. A million accounts with 50 SP is more than the bidbots combined power now and that 50 SP will be active SP as users will have earning potential on it. This is not a short term process though and it is likely going to be like you say at the beginning.

I get the idea of RC and if everything falls in place it will make sense for all steemians that truly understand the true meaning of a social media in the blockchain.
Cool beans.

Posted using Partiko iOS

I don't think Resource Credits should be bought and sold. I think they should be delegated to good newbies who join, and removed from newbie spammers. The reason is that it is desirable to preserve the ability of newbies to join and seamlessly transact. If there is a cost to them , they simply won't join and the blockchain will decline.

If at some point in the future, the blockchain became a super desirable place to be (eg if Ed Sheeran was a member, and his fans wanted to join), then resource credits could be allocated a value. But until then, it's a self-defeating idea to put up barriers to newbies.

What it seems to me is that resource credits are an advancement because they make transparent what was already happening before, which is that someone was paying for newbies to join. In the future, all SP holders will know how much, and have some control over the calibre of newbies whose resource credits they are funding.

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I think they should be delegated to good newbies who join, and removed from newbie spammers.

This is what the Dapps would likely do. The users wouldn't need buy RCs, the Dapps would in the same way a website has a bandwidth usage level that they pay more for depending on traffic.

What it seems to me is that resource credits are an advancement because they make transparent what was already happening before, which is that someone was paying for newbies to join

Yep. This allows for an accurate pricing model too kind of like a water meter on a house.

I anticipate what you say is point on. However this is the part of Steem that is clear as mud to me sadly. I suppose it would only be understood with the application and physical in person interaction. Thanks for the thorough article.

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I anticipate what you say is point on.

There is a lot of speculation here.

I suppose it would only be understood with the application and physical in person interaction.

yep. picturing it and using it are two different things and i think that if created, it would make a great deal more sense.

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@exyle did a good article about resource credits a few days ago. You might want to check it out.

Impressive perspective. I am not too sure of just how much RC I spend each day on here. But I think the idea that allows for bigger accounts with very little activity to lease out their RC might have been anticipated.

What does this mean for new users who are yet to invest?

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But I think the idea that allows for bigger accounts with very little activity to lease out their RC might have been anticipated.

It has been anticipated but not implemented.. yet. :)

What does this mean for new users who are yet to invest?

I wrote a kind of follow up today that looks at a bit of this too.

https://steemit.com/future/@tarazkp/long-wave-riding-stabilizing-steem-though-rcs

However, new users won't need to invest to use but might want to to earn immediately.

UPDATE: Hi @tarazkp this post has been featured in Exponential! C² Featured Posts, a daily publication of the @c-cubed blog. Check it out :)
https://steemit.com/curation/@c-cubed/20181001t225900842z


This post was shared in the Curation Collective Discord community for curators, and upvoted and resteemed by the @c-squared community account after manual review.

one thing that I hopeif this speculation really works, I need to learn how to get the RC leasing, because I don't want my delegators lose their RC after delegate the Sp to me... need to learn about the option, but ready or not ready.. I'll keep steeming

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there is nothing in place yet but, keep learning about everything anyway :)

Thank you so much for the detailed explanation @tarazkp. With this last week being about "getting the kinks out", I was one of those who took a sabbatical, focused on my real life a bit, and let the big guns sort it out. I'm so glad to have your post as one of my first to read upon my return.

My favorite bit I must add, is this:

RCs could be an absolutely brilliant addition to Steem (despite the birthing process)

Time will tell, but I'm an eternal optimist, so I'm erring on the side of onward and upward :)

Thanks again !

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It is going to be an interesting 6 months ahead before SMTs get released (slated for march) so be ready :)

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I live my life with zero expectations so I'm never disappointed and occasionally pleasantly surprised. I have a feeling that may come in handy here too :)

Just saw the picture of the cake got hungry and clicked right away ... I don't know what that says about me 😅

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Upvoted.

The cake looks quite delicious and yummy ...hope its taste too..👍
That 'IF' is like if added sugar or not in cake..lol

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Thnaks for this nice post...
Now I got clear picture of RC and how to use it to keep yourself active on platform and earn passive income.