Hi! In this post we'll have an in depth look into an idea I've been trying to pitch for over half a year now! I've made about 5 other similar posts but hopefully this will be the one to get some attention! It's a proposal to change Steemit at the blockchain level to make dolphins and whales more likely to actively curate for lower rep users. How?
Edit: in-depth cases for rewards system here
PS This post will be split into multiple parts as I've been typing this and working on the ideas for a couple hours now and I'm still nowhere near done. I'll finish with the rest of these posts in the coming days!
- More curation rewards for high rep vote for low rep
- Self-voting will be counted at 0 curation rewards
- More curation rewards for being amongst the first to vote for a post that became popular in the future
- Reward users for upvotes on content older than 7 days (smaller rewards given once a month)
- Curation rewards consists of half SP and half SBD as well
- Reward pool will be split 50/50 between creation and curation
- (Random thought): dedicated rewards pool for certain topics, e.g extra $1,000 per day for a week into the tag "gaming" so posts with this tag would receive extra rewards, can be used to promote certain communities.
This idea aims to:
- Bring more support from bigger users to smaller users, rather than just whales upvoting each other
- Encourages voting for GOOD content, not just any content
- Discourages the use for voting bots and self voting (which I'm guilty of)
- Rewards users for providing information that withstands the test of time
Table of contents
- A new Steemit rewards system
- In-depth explanation and formula for high rep upvote low rep idea + example + why remove self up-vote curation
- In-depth explanation and formula for early upvote idea + example
- In-depth explanation and formula for rewarding upvotes over 7 days
- Why split curation rewards into SP and SBD
- How it supports each of the aims
A new Steemit rewards system
From what I understand, there is a daily rewards pool on Steemit (75% of inflation) that is to be given out to the community for creating and curating. I think that this is were author payouts come from, but curators share a percentage of that 75%. There is also a 15% of the daily inflation given out to "SP holders", which I'm not quite sure what that means.
However, that aside, let's assume we have 75% of the daily inflation of Steem to work with, otherwise known as 100% of the rewards pool. I propose we split that rewards pool 45/45 between creation and curation.
So the payout you see on the bottom of the post would be halved, but the author will receive 100% of that amount. So author payouts will be reduced by approximately 40% assuming they're receiving the same amount of upvotes they were getting before.
However, effective curation would be awarded a lot more, I'll do the maths later!
The missing 10%: rewards pool for content upvoted past 7 days! I'll explain how this will work further down! Basically, at the start of each month, all users who have posts older than 7 days gets paid out rewards. These rewards will of course be a share in the 10%, thus smaller than your regular posts!
Voting effectiveness: I'm not sure how it works at the moment but I propose that each time someone upvotes you, you receive a share of the rewards pool proportional to the vote power used. For example, someone with 1000SP upvotes you for 10% when he is at 50% vote power, you get 50 shares. If there are hypothetically 1000 shares altogether today, you receive 5% of the rewards pool. Then the next day you get 100 shares of the rewards pool but there were 10000 total shares because more people voted, therefore you get 1% of the rewards pool. Then you get all your rewards on the 7th day of the post! Same system for curation rewards.
Explanation of how reputation can affect curation can affect curation rewards
Basically, the higher your rep, the more curation you get for upvoting someone with lower rep!
So if someone with 40 rep upvotes someone with 25 rep, they'll get more rewards than someone who is rep 30 upvoting for someone who is rep 25. The idea is someone with more rep has made more Steem via Steemit, thus should have more SP. However, this could potentially be counter-productive for someone who is low rep but an active curator, so this multiplier will be quite small.
An example of the formula could be M = 0.0001R(R+10) + 1, where M is the multiplier and R is the difference in rep.
So if a rep 50 upvotes a rep 25, he would get a multiplier of 1.0875, in other words 8.75% more curation rewards.
If a rep 75 upvotes a rep 25, he would get a multiplier of 1.3 = 30% more curation rewards.
A rep 75 upvote would likely be a lot more than an upvote from someone with rep 50, thus should receive more curation rewards for finding a minnow to upvote! Also, a massive upvote should bring a lot more attention to the post, thus putting it in hot or trending, thus increasing visibility for the minnow. The whale and other original curators will receive heaps of curation rewards based on the early voting algorithm I'll explain later. However, the difference in rewards is not SOOO drastic that it would detract lower rep users from voting at all!
Note: anything under reputation 25 is considered to be reversed, e.g rep 20 = rep 30, rep 0 = rep 50, rep -17 = rep 67 (@berniesanders). This encourages users to be careful what they do on Steemit as being flagged while being on low rep could snowball their account downhill more as others are less likely to upvote them.
Explanation of the early voting algorithm
There were a few objectives I had with this algorithm and after a few hours of trying to come up with something with my limited high school level maths skills (I'm starting uni this year!). I'm sure someone would have a better algorithm/formula (idk the difference between these 2 terms), but you can use this as a start if you'd like. It's not perfect but I've spent hours on it so here it is!
The algorithm aims to:
- Incentivise voting for quality content
- Incentivises voting early to bring more attention to quality content (put it on hot/trending)
- Reduce people abusing curation rewards by voting for whales with tons of followers who always get a ton of upvotes
- Not punish voting for whales so hard that people don't vote for whales anymore
- Each post's payout is equivalent to the value people perceive it to be worth
Part 1: Basically, the more upvotes on a post the more curation rewards everyone gets
Part 2: Basically, the earlier you upvoted, the more curation rewards you get. This is to prevent people from upvoting posts with already heaps of upvotes to game the system + early voters are likely the reason the post gained visibility
Part 3: Reduce rewards for whales with high rep and high visibility already
Part 4: Reduce rewards for whales with high upvotes already, hopefully this won't hurt minnows who has one massively upvoted post, perhaps change to average upvotes but that punishes people for creating consistently high quality content. This part will need revising.
Test cases for positive multipliers
- Upvoting 1st on a post with 1000 upvotes gives you an increase of 2776%
- Upvoting 500th on a post with 1000 upvotes gives you an increase of 2456%
- Upvoting 999th on a post with 1000 upvotes gives you an increase of 323%
- Honestly, I think I'm pretty happy with the curve of these results. When you multiple them with the negative multipliers it'd make more sense.
Test Cases for negative multipliers
- Upvoting someone with a reputation of 75 and a maximum upvoted post of 2000 upvotes will incur a penalty of 95%
- Upvoting someone with a reputation of 57 and a maximum upvoted post of 50 upvotes will incur a penalty of 77.5%
- Upvoting someone with a reputation of 25 and a maximum upvoted post of 0 will incur a penalty of 1%
- A little too generous for newbies. Might create a system were people create new accounts and post once for massive curation and author rewards by upvoting it first with and making it visible thus giving it more author rewards.
Putting both multipliers together
- If you upvote first on someone with 25 rep and that post gets 1000 upvotes, you get around 2747% increase on your curation rewards
- If you upvote first on someone with 75 rep that gets 1000 upvotes, you'll get around 35% increase on your curation rewards.
- Putting them together, I think I'll need to tweak the negative multipliers to give less penalty to whales and slightly more penalty to minnows to avoid gaming the system with new accounts and so the whales don't starve.
This will be it for today's post. I've spent a lot of time on this and if this gets enough attention, I'll work on the rest of the proposal! I know the 2nd algorithm I have isn't perfect and will need more work! I will outsource that to a random steemian to help me out if you'd like a challenge! I've commented about the problems I perceive in my algorithm above.
Feel free to comment any suggestions or concerns you may have and I will aim to answer everything. Thanks for reading if you've read this far!
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