H guys, how's it going. In this post I'm gonna talk about the changes that will be implemented tomorrow because of the HF21 update, as well as discuss some ideas behind the update. I'll keep it as short as possible ;)
nice blockchain wallpaper
The 10/45/45 Split
There's no way around it - before HF21 the authors received 75% of the post payout, now they will receive 45%. First, because of the 50/50 authors/curators split, then 10% is taken for the Steem Proposal System.
Because of that 40% drop, in order to keep the negative ROI protection, @tipU will have to give higher upvotes for the same payout: from around x1.34 (1/0.75) to x2.22 (1/0.45) which is a 50% increase. Vote buyers rejoice :)
Of course I will monitor other voting services (bidding bots) and adapt to the market. If negative ROI will be a common thing and vote buyers will be OK with that (they will get more curation rewards if they vote first after all), than @tipU will enable more dynamic ROI calculations that allow negative values too.
Curation Rewards Payouts
Now, because @tipU will use more voting power for the same profit, this will lead to lower payouts - but only initially. Thanks to the increased curation rewards, each week @tipU will be able to power-down more STEEM and pay it to the investors.
Currently @tipU distributes additional 150 STEEM daily to the investors, from tomorrow this value will be increased to 300 STEEM and it will grow further over time, as higher curation rewards flow in.
The Curation Rewards!
Those will be much more important now so I will be actively trying to optimize @tipU in order to maximize those rewards. The main focus here will be to give additional bonus to vote buyers that use @tipU to promote mainly new posts - things like better ROI, additional @tipU profit sharing tokens etc.
Higher curation rewards will translate to better APR for the investors so it's a very important thing for me :)
5 Minutes Curation Window
Under HF21 the curation window was decreased from 15 minutes to 5. Overall I think this is a good change, you can vote on new posts without thinking too much about the "penalty" for too early vote.
For users that use @tipU to promote their posts this change means that they will get best results for promoting new, just-made posts. Again, the aim here is to maximize the curation rewards.
Non-Linear Reward Curve
This one is kinda hard to explain. Basically the small votes are worth less, but they will grow in value if the post gets more votes.
To give you an example: let's say someone pays 0.1 STEEM for a @tipU upvote. Under HF21 this upvote will be worth only 50% of the "normal" value. But if the same post get more upvotes from other users and it's value will grow to about $3.6 (a value of 20 STEEM), all votes on this post, including the one from @tipU, will be worth full 100% value, or maybe even higher.
Basically the more value the posts gets, the more valuable each upvote on this post becomes.
Now, I have 2 options here: increase the minimum payment to around 10 STEEM, so @tipU would cast only 20 STEEM (in value) upvotes or higher, which solves the problem, or still allow small payments but inform the users that @tipU vote will become profitable if they get more upvotes from other users. I kinda like the idea that everyone (that is not blacklisted) can use @tipU so for now I'll stick to the 2nd option and see how it works.
Oh, this one is scary for me. The idea is great - spammers and sh!tposters get flagged, they stop to milking the steem system, more value in STEEM, yay! But there's one thing - people are not perfect. There are some nasty, wicked or straight up toxic individuals out there and if they can negate (cancel) someone's hard earned money, with just one click, for free... Ouch, I'll hope we don't end up with huge flag wars across whole communities.
First of all this is not my stake, not my money - it belongs to the investors and I don't want to risk not my money by getting into flag wars. Well, when the case is clear, yeah that makes sense, but what if someone posts a photo and use bots to upvote the posts to the top trending for the next week. This sounds like a low effort, just one photo, but what if the guy is a National Geographic photographer, he spend 2 months to make the photo and it's really awesome.
What I'm trying to say is that "low effort" can mean different things for different people and ultimately it's up to the community to decide, not selected individuals that, thanks to their (steem) power can decide in the name of thousands users.
Of course, as everything with HF21 - no one really knows what's gonna happen so as always - we'll adapt :)
Free Downvotes And Curation Rewards
The free downvotes have one great positive thing about them - they will force bot owners to upvote mainly good content. If the bot owner allows spammers to use his bot, he will loose curation rewards because of the downvotes. This is something that also @aggroed mentions - bot owners should put a lot effort to block the users that are milking the system.
As for @tipU - it uses @themarkymark blacklist api which aggregates all blacklists into one. If you're on it - you won't be able to request upvote from @tipU. So this works like a first line of defense.
But under HF21 this might be not enough so I will be adding some tools to monitor the flagging. If a user regularly request upvotes from @tipU and in the same time gets a downvotes from different users - he will be added to the blacklist after manual checking out the case.