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RE: Self-voting needs to be addressed
I'm more eager to see self-voting stats actually. Then people might finally understand the problem. I might have to look into that :p
I'm more eager to see self-voting stats actually. Then people might finally understand the problem. I might have to look into that :p
I'd be happy to provide my observations.
My account is worth $16000, and I can upvote for about $6 (from more like 24 cents prior to the fork, iirc.) Were I to upvote myself 10 times a day, I'd see approximately $61 in rewards (ignoring SBD float).
By my calculator, that's equivalent to .38% compound interest, per day. If we ignore the fact that it isn't released and compounding daily, and just multiple that by 365, we get 138.7% annual "interest/inflation/rewards".
Somehow, that just "feels" high. With only about $32000 invested, one could make over $120 a day, entirely livable in almost any country.
There you go, i did the same calculations yesterday and it confuses me to no end. How the hell can we just print over 100% per year when there's only 9% inflation? I don't understand! Is there a bug in the voting power algorithm?
I'm trying to reason the same thing out. It would seem that two different things happened, the voting power change, and the flatter rewards change. Voting got 4x more powerful, and I didn't account for that. So, let's call my vote before the fork 96 cents, or 4 times as powerful.
That leaves us able to assume the rest of the result is from the implementation of linear rewards.
Regardless of where the numbers come from, an asset that throws off 138.7% guaranteed (more if we account for SBD being worth more than 1$, right?) plus its own capital gains or losses, and is not a ponzi scheme is beyond legendary. It's almost unheard of.
I immediately worry it is too high, but I do not have a grasp on how much the difference in the linear rewards is. I'm hoping some more knowledgeable folks can clear this up for us.
One would expect massive inflation (price drop) from an asset that multiplies itself so much, unless incoming demand is huge.
Well there hasn't been any doubt that it's a Ponzi since the beginning, it is, sorta :p
But yeah this is extremely unsustainable. Everything above 1% yearly ROI should be considered risky, let alone 100% or more.
Maybe they're working hard on HF20 to correct it so self-voting can only reward you exactly as much as the annual inflation. Let's assume (and hope) that they have noticed the same thing we did.
I don't think you can call it a ponzi, those require you to put money in. It's non-optional. This generates tokens that the free market values, there's nothing disingenuous about it. My concern would be for a price event.
It may be that this power simply came from the curve flattening, and that all this money went to the top 1% every day before. I am not finding any comments on post-hf19 posts where anyone notes that this is a bug. I think the alarm would be raised by now.
How is this not a bug (if we are correct)? If every single user can increase their SP by at least 100% per year when there's only 9.5% inflation at most?
"If every single user"
I'm far from sure myself, but I think that's the wrinkle. I'm not sure all users can do this. We gained this increase of influence at the expense of whales who were benefiting from non-linear voting.
Here's an analogy. Castro died with a net worth of an estimated "at least" 160 million. Cuba had a population of 11 million in the year 2000. The average Cuban annual salary at the time was around $18. He alone could have handed out a month's salary to about 75% of his population.
I give up, though, I can't explain 137%. The rewards pool is supposed to readjust?
Oh wait, maybe that's the problem. The increased reward pool only this week, because they essentially created money out of thin air on the posts that were already voted on. I think that's it!
So we have to wait at least a week and calculate again.
Perhaps it's also possible there are very few active accounts splitting the reward pool today? I don't know the up-to-the-day stats on that.