There is something rotten in the State of Steemit and you should be very aware.
Yesterday I wrote a piece about the reasons behind the recent surge in the price of Steem. The price, as it stands, is ludicrous and it has been engineered through the management of currency supply.
A few weeks ago there was a 7-day freeze upon all payments of rewards followed by an extremely miserable period during which the rewards on posts became so pitiful as to be meaningless and this drove many good steemians away.
Thankfully, a few have returned.
The reason for the meagre rewards was that we had to fill a ’30 Day Rewards Pool’. Given the average gleaning of benefits from the blockchain activities, this amounted to $210,000 of rewards being foregone/delayed/put on ice – the vernacular does not terribly matter. The Community paid for this ‘Pool’ wherever it is and the Pool is allegedly full of unprinted or un-minted (there is no real term) steem tokens.
And yet, there is a shortage which has caused this ludicrous price spike. Why is there a shortage when we have just foregone $210,000 and have received no benefit?
The official version: “the way that rewards are paid is that there is a virtual supply of coins. What these are is basically a mathematical calculation of how many coins can be produced by the blockchain to pay out rewards within the parameters of the inflation rules. No coins are actually minted/generated until the payouts are made. What happened with the filling of the rewards pool period is the supply of virtual coins was incorrectly set too low at the time of the hardfork, and it took it a very long time to 'catch up' to where it thought it could pay out more coins. During that time, basically what happened is the number of new coins that were produced was significantly lower than what it should have been.
The key thing to understand is that the coins that are 'in the rewards pool' do not actually exist
There are no coins in the rewards pool. They are 'virtual'. They are a representation of coins that will exist when the blockchain produces them to pay rewards.”
In other words, the community has just put $210,000 of its money into Steemit Inc. so that Steemit Inc. can generously give it back to us.
That really pisses me off.
So, I started thinking: ‘why would they do all this. Making rewards ‘look’ higher through engineering a shortage of steem and a subsequent price surge is designed to make everyone feel all happy?’
Steem is violently over priced/valued. It has to return to a sensible level. This whole scenario was driven by Steemit Inc. and so … it came as no surprise when I unearthed a little dirt in the detail.
Below are the top accounts. Now it is futile trying to evaluate what went on with a trading house like poloniex or bittrex, even blocktrades. However, do the whales not have a sufficient advantage?
15-25% out-performance over and above the standard uplift – even 50% additional rise. Are you seriously going to suggest that there is a complete coincidence in this matter? It is strange, is it not, that the % over and above the platform average uplift is so similar between these paragons of virtue!
This kind of behaviour has a very clear Name Tag and it is not good.
I need comment no further. I am disgusted.
Follow @ebryans for Content:
Steemit Inc didn't get any of those funds, they were being allocated into the reward pool. No one was earning more during this period as far as I'm aware. It's just how it was designed (which I agree went poorly) The witnesses didn't catch the issue, and if I had to make an excuse as to why, it's because we were all exhausted fighting the idea of splitting the rewards pool into one for posts and one for comments.
This wasn't some manipulative event that occurred, and the price spike recently has nothing to do with it. It mostly has to do with the ebb and flow of BTC's massive rise. To cap it off, think about which two forms of currency you get paid out for posts:
You don't get paid in STEEM.
If posts were paying 100% of normal and this hardfork never occurred, the same amount of STEEM would have still existed today, and the price would have done the same thing. All of those post rewards would still be locked away as SP, with likely an incredibly small portion of them being already powered down.
I am a fan of conspiracies and love exploring them, but this isn't one of them. I also apologize if I came off brash, I'm not trying to be a dick, just spread an opposing view, which I believe is much more likely.
Ah dammit, that was me. I was using chainBB in a dev build and was logged into the wrong account. I need to make the background turn red or the page look crazy when I'm on dev, so I stop accidentally posting with the test accounts :)
Always happy to listen to alternative points of view, @webdev - however, you seem to have given an opinion which cannot counter the evidence which you can see before you.
There is nothing in the Reward Pool, yet the community forewent $210,000 (based upon $7,000 per day allocation as it was). Please explain, therefore, where did the money go?
I have had people admit it was a manipulation - people who are vv close to the centre.
My submit a story page asks me whether I would like 50/50 Steem/SP or 100% SP - what does your submit a story page say?
Hence, there is even less liquidity if there is no pay-out in steem.
So, I am very happy to engage in a discussion but ... it is best to give a rationale for your disagreement, rather than a feeling.
Namaste.
None of what I said in my last post had to do with feeling - it has to do with my understanding of how the blockchain works and being a witness involved in months long conversations about HF18.
To start with - the reward pool is not empty, look at steemd.com, on the right hand column, near the bottom. You can see the rewards pool right there with it's statistics.
Currently 1,584,060.845 STEEM is in the reward pool and growing.
As for the submit story page text - it's flat out wrong right now and should be fixed. You get paid 50/50 SBD/SP (most of the time). STEEM payouts on posts haven't been happening for months, and STEEM is only paid out to authors when the price is incredibly low and the SBD Debt Ratio is too high.
You can see the last 90 days of reward distribution here:
https://steemdb.com/charts/rewards
The rise in STEEM payouts on the chart from December-March was because the price was hovering around 0.10-0.15 USD. This isn't something someone decides, it's how the blockchain has been programmed since the beginning (as far as I know) to balance the amount of SBD in existence.
I'm happy to answer any questions you have about this stuff.
Firstly, @jesta, thank you for your reply. I very much appreciate your willingness to enlighten me, and others, in my failings of technical knowledge.
I would, though, ask that you address the issues: it seems that the rewards pool filling is/was a white elephant. At best, it should have been funded by the steemit account. If it was to be funded by the community, as it was, I provided a very commercially sound option: Rewards Pool Solution
Here is another explanation provided to me (by a witness): "the key thing to understand is that the coins that are 'in the rewards pool' do not actually exist
there are no coins in the rewards pool. they are 'virutal'. they are a representation of coins that will exist when the blockchain produces them to pay rewards."
In terms of the steem price, this is not a blockchain mechanic - it is a commodity situation based upon supply and demand. The supply has been squeezed.
In terms of Steem/SP payments - I am appalled. Why offer 50/50 for months, as you put it , and not deliver the assurances you are putting forward?
I thoroughly understand that changing protocols on the system is a very complex thing. The changing of script upon the User Interface should not be. If it is that complex, get a new one.
In terms of the extra upside achieved by those close to the decisions made ... that has nothing to do with anything other than knowledge of the plan.
How come the figures are so identical in various instances?
Steemit engineers might be clever. That does not make them smart.
Thank you again for your engagement. I take no joy from this but ... if nobody raises questions when there is such a glaring issue to be addressed, then the checks and balances will not be adopted until it is way too late.
Namaste.
The rest of the comments in this thread deserve a soap opera of their own.
Hi there @acidyo - do you think that there is nothing to address here?
I am happy to admit my shortcomings.
Unethical profiteering, as the data seems to suggest, is hardly worthy of pathos. Have you worked out how many million dollars have been accounted for in this scenario?
Please remember that every extra dollar gained via such means is a dollar less for someone else. You seem to trivialise such things.
I do not.
@jesta explained the situation pretty well. I find it ridiculous how quickly users get fooled by conspiracy posts like this. Hence my comment.
Before you decide to come up with the next loophole that you think exists feel free to do some re-search about facts first since it shouldn't be to hard to google considering this is an open-source platform.
The point is that I have done my research and the research comes from steemit data. Rather than stand there and call me a conspiracy theorist, how about you EXPLAIN why you think I am wrong.
The facts speak for themselves. I came up with nothing other than steemit data.
So: "feel free to do some research about facts first since it shouldn't be to hard to google considering this is an open-source platform."
The fact (steemit data) that more people read this than vote ... I may not be a technologist in terms of IT but, I think I can do you for savvy.
Or maybe you are paid by the Stinc to try to counter the behaviour?
Either way, to promote apparently usurious behaviour which benefits the rich few at the expense of the disadvantaged majority is a concept which William Wilberforce outlawed many years ago.
Namaste.
Feel free to leave.
I agree with this interpretation. Steemit Inc. is not the Steem blockchain. The reward pool is in the blockchain, simple as that.
@ebryans I think you should retract that accusation.
We shouldn't comment on things that we don't understand.
Didn't you understand my post? I am sorry.
I understand your post well. I think that you and also me don't understand deep enough how steemit and steem work.
Apologies if my previous reply was a little curt - no affront intended.
In a way, you are absolutely correct - I am no technical master. My knowledge and understanding of the blockchain are both vastly inferior to those possessed by the majority of the steemit staff.
I am, however, a business man, reasonably well educated and can spot a con a mile off.
If there is a lack of understanding displayed by my post, then so be it. There does however, need to be an explanation. You and I are patrons of this service business. We are subscribers. We are clients of Steemit Inc., by proxy, and we are participants in steemit.com. There is one hell of a lot of money being gained and lost through this enterprise and I am suggesting that the advantage which has been gained, according to the figures presented to us by steemit, seems to be in need of investigation.
It has nothing to do with understanding how steemit and steem work. It has everything to do with ethics in business.
I have read and listened to the vilification of Google and Facebook by the Steemit Inc. leadership. They then manage to justify their behaviour which is worse to the extent of exponentially greater depravity.
Put it this way, were my article validated objectively (ie. data validated) and published on mainstream media, people would not believe it because ... people go to jail for such behaviour. It is called price fixing and insider trading.
I am at a loss as to why everyone seems to think that they are above scrutiny at Steemit Inc. - they are presiding over other people's money and are allowed to behave unfettered.
Namaste.
FUD. Sorry for flagging, but I disagree with being rewarded for this post as it is disinformation purported in a tone that is very condescending.
Please do your research.
Strange that I have only just seen this reply - it says it is 9 hours old, yet I have just seen it.
Anyway, I have written a post about this behaviour. Have a read; I anticipate your tawdry behaviour.
You wrote:"it is disinformation purported in a tone that is very condescending.
Please do your research."
The problem facing you is this: I do do my research. I do it very assiduously. Furthermore, you and your ilk simply say that it is wrong, when it is not. If it is wrong, prove it. So, to coin your phrase:
"Please do your research."
Should you choose not to do your research, I shall have no option other than to assume that my research has been done properly and that your behaviour is that of a spiteful yellow-backed flake.
Namaste.
You really know how to shoot yourself in the foot while looking pretty deranged, eh? Wow, I kind of feel bad for you to be honest . . . I'll take this chat on over to your post.
Be my guest; however, please don't even think about trying to say anything without a decent argument which is backed by verifiable data.
Fair?
By the way, my foot is injury-free ... maybe ... no, couldn't be.
You might want to follow your own advice, because what you're talking about is straight up FUD. You're making SERIOUS accusations for no reason. You're coming off as if you're a jealous spoiled brat that isn't getting their way so you just spew bullshit. You know it, I know it, everyone does. You're unstable . . . You're screwing yourself over . . . It's embarrassing to watch . . .
Matt Abrams, I suggest you take a damned good look in the mirror.
Shall I start with your Social Security Number?
I will get pretty upset with you if you continue to defend a felonious activity.
What are you even talking about?! Lol.
Yes, please, start with my SSN. Post 'er up, bad boy. Do it, come on now. You've made the threat, follow through.
Also, what are you even talking about a felonious activity?! Unhinged . . . You're furthering my theory that you're mentally ill . . .
One of the bad things now is that all the voices of discord are being thrown out of Steemit.
Autonomic, nonconformist and a free spirit are not welcome.
They are shooting any messenger that doesn't bring good news.
They want to show that decentralization is a "mindless conformity".
Only the voice of the community can change things and fight for equality because inequality is the cradle of injustice.
If Power becomes the "sponsors" of the community journalists, we will soon be like the defunct of social media mainstream where "sponsors" killed and controlled freedom of speech.
As I always say Steemit is totally resistant to outside censorship but inside only the community can stop it.
Please explain
"One of the bad things now is that all the voices of discord are being thrown out of Steemit."
Who threw Discord out and how did they do that? What did they say for you to believe that?
Is that everyone who uses Discord?
Sorry, my friend I was meaning discord(ance).
Discord as nothing to do with it, but is a good place to hangout.
But there are some interesting communities on Discord, and you should visit because you will meet wonderful people that Steemit is made of.
Thanks, @pitterpater and sorry for the confusion I generated.
I love the community but I'm allergic to the misuse of Power.
Steemit needs people like you, so keep on your beautiful work and don't let anybody put you down.
I've been following your work since the first day.:)
Thank you for clearing that up. This is one of the things that makes steemit so beautiful. That even if we have different perspectives when we come together our voices share the bigger picture.
I don't know what to say about how kind you are for following and supporting me. Another thing that is so powerful at steemit is how we can see our improvements and all along the way people like you that have encourage. Thank you for being important part of this amazing community.
Thank you too for being an important part of this amazing community. :)
Thank you for stopping in and commenting!
Yes, the policies of encouraging centralisation of power and influence - now 90% of the value is in the hands of a very small minority (estimated at c 60 actual people) - upon a medium which is synonymous with decentralisation - make for a very Orwellian world.
Some are most certainly more equal than others and everything seems to be at odds with the dogma spoken. It makes a politicians rhetoric seem to be laced with integrity - such a pity. A Machiavellian excuse will do nothing to arrest this slide into a feudal structure of master/slave characteristics.
Number of people are shrinking, numbers of accounts are rising and the rewards pool is going to the power holders. Leadership is terrific when you only ever communicate with those whose pockets you are lining. They are building a castle - but the foundations are looking very sandy.
Yes, we must understand that a private property in the blockchain of Steemit is not a decentralized application.
I knew it since day one when I was flagged for no reason by a "cop" that wanted to show he was making his job for the company.
So the biggest problem here is that some of the Powerful are misusing their authority and we can't judge all the whales for some rotten apples that are fighting for oligarchic power. And I even see some whales that care about Steemians and try to fight lobbies that are destroying Steemit and the money some investors have put so that the dream could become true.
The influence of possessions makes Steemit a Hybrid Society, expressing the mechanisms of a possible myriad of small equalitarian groups, but mediated by objects that are still a hierarchic pyramid in all society.
Steemit and general society is an interelation of people (or intelligent agents) in interrelationship with people, interacting in a field influenced and mediated by transactions of objects or things.
It's a pity some conservative groups like to follow this fascistic figures, by the lack of autonomy and self-awareness, making them live in a voluntary meaningless servitude, or conformism.
My next post will about conformism to make people more conscious that fascism has always been supported by conservative groups.
I've searched everywhere, under the bed, in the dishwasher, down deep inside the couch (sofa) ....I've searched everywhere but I can't find all that missing reward pool loot.
My hyped "To The Moon and Beyond" rocket just ran out of fuel.
What does that mean for the steemit community? Is this kind of manipulation against the law. It seems impossible to stop because the greed comes from the top. Dan and Ned? Why would they ruin their own reputations and look like scam artists? I am so disappointed and wonder if this will ruin steemit.
Don't buy into this @pitterpatter, the only thing that happened is less Steem was created. (Thus distpributed) Less Steem was created for EVERYONE who holds/earns Steem.
We have an Inflationary token meaning more is created all of the time. There needs to be a demand for the new supply or the price drops. I am not a huge stakeholder and I was glad a bit less Steem was created.
Many of the "Altcoins" experienced a rise in price - if SteemIt, Inc. had the ability to influence the markets to the degree implied... I do believe we would all be rich.
We have 50+ witnesses who do not work for SteemIt, who watch the code and the activities and have every reason to look out for all of us. (They hold the same Steem we do, just larger amounts)
Thank you for your comment. There is a lot I don't understand as I read this post. The one thing I do know is that one of the whales on that list bullied me as a new minnow for questioning . Honestly I still didn't get why he and his gang spWhales would flag my comments for questioning unfair voting. I was new I thought I wouldn't be rejected like I was. To make it short I did a post on it if anyone wants to read it.
https://steemit.com/steemit/@pitterpatter/steemit-is-a-popularity-for-1-whales
What I came away with my post was there is a darker side to steemit community no one wants to address or discuss... BUT > @ebryans did and he helped many minnows, like myself, by changing the vote. It's made a happier place for all of us not seeing so many bloody flag wars.
I thought all was well in Steemit community but here it is again. We need to address this
.
Steemit is an amazing platform run by brilliant people. It's rare and soon critical mass will discover Steemit. But. Steemit can not be successful, long term, with this problem unresolved.
This post content needs to be discussed because it goes against everything Steemit is about and what we all are being told.. Having a few powerful people rule will kill steemit. It is important that @ned and @dan come to the community and explain this. If they can't we have no right to tell our family and friends "Steemit has Freedom of Speech" Steemit Gives You a Voice." Steemit is a place where you earn for your talents" We need to debated without anger. Sooner or later if this is NOT debated our beloved Steemit will crash and burn. I don't want to see this. LET'S TALK in the spirit of peace. Can we do this?
Thank you @pitterpatter for expressing yourself so.
I think that there are people who truly are of the opinion that someone like me is taking pleasure at pointing out issues such as this one. I do not.
However, neither can I stand idly by as $70million in value is added to these top 25 accounts over the period of time in question, given the circumstances. Were I to do so, I would be equally complicit.
Let's hope that there is an opportunity for rational discussion.
Passive aggressive denials from bullying power holders will do little.
"LET'S TALK in the spirit of peace. Can we do this?"
YES
Namaste.
I am sure it is uncomfortable to bring up matters like these and it is uncomfortable to read/hear/talk about them. Most of us know that the few who take advantage and get away with it for a period of time are not thrilled you're pressing the light switch on the beadledom. NOT TO WORRY I have come to believe the STEEMIT community is different from our world and we can handle difficult matters without destroying people or companies. We can make positive changes that will not harm others. It is the ACTIONS not the people we deal with. The community is coming against bad actions and in so doing we ALL BENEFIT. > it is the bad management/behavior that must cease.
Thank you for your stance.
There are so many good things to celebrate here on steemit - all of which are about the people whom one has the pleasure to meet - like you!
Taking responsibility within a community setting is sometimes uncomfortable and can ruffle feathers - the secret is to see the end-game of that particular issue and allow people their dignity within the resolution processes.
Have a great weekend!
This makes for a stronger community and Steemit. This is my vision.
@whatsup - you are under the influence of a cloud of BS.
I did not invent the data - the data is steemit data. If you would like me - or anyone else, more importantly, to see the situation differently, may I suggest that you deliver some compelling evidence?
Have a look at the situation; SHOW why the evidence points to something else. Being passive aggressive and strutting about like you know better ... demonstrate your righteousness.
40% of all the steem is in the market - actually - it is way less than even that. Who presided over that situation? Why? When will it be addressed and rebalanced?
"if SteemIt, Inc. had the ability to influence the markets to the degree implied... I do believe we would all be rich." - $70 million added to those top 25 accounts in the period in question. What do you call rich?
The seriously REAL problem is that the platform is groaning with about 3,000 punters. You know this, I know this and it is high time there was a little integrity.
Shall we proceed together in search of better protocols? Or do you just want to bash anyone who says that steemit might have a flaw or several?
"We have 50+ witnesses who do not work for SteemIt, who watch the code and the activities and have every reason to look out for all of us." - Do you really believe that to be true? They have a vested interest in maintaining the status quo which serves them very nicely as it ensures their continued over gorging from the Rewards Pool. There is an enormous conflict of interest going on there.
Again, you know this and I know this.
You had better C&P this straight back to Steemit Inc. in your dissenter-watch Report.
Namaste.
"You had better C&P this straight back to Steemit Inc. in your dissenter-watch Report." I loved this line. :) lol.
It is all a matter of perspective I guess. I thought about this after I commented.
As I am in Steem for the long haul and I want my Steem to be valuable, I was more worried about the overall price and health of Steem than I was about the reward pool.
Best of luck in your quest ebryans.
And guess what, @whatsup - I am too.
Why would I bother if I was not? Publicly, I get ridiculed and cold-shouldered and excluded - blah, blah. I do not give a rat's proverbial.
What I do care about are the same things as you.
As I said, shall we go forwards together in the quest for a healthier better steemit which deliver a better outcome for everyone or shall we just allow the poor behaviour to continue unchecked?
I am simply disgusted - there is no other way to put it. Profiteering from one's own manipulations - especially in the light of the unjustifiable leverage that they already have. So many people just do not want to believe that 98% of the rewards goes to 4% of the accounts. Now this.
Please don't shoot the messenger! Did you read my explanation for the Steem price yesterday?
Anyway, there is life outside steemit.com
Namaste.
I would never shoot you. I appreciate your honesty. It also digusts me and I think the community needs to bring light to it this should be stopped or people need to get out of the scam. I did not read the explaination and will now.
Anyway, there is life outside steemit.com
You are leaving. There's no fixing this?
No, not leaving - just very aware that steemit is a very inwards looking entity.
Yes, there should be accountability for all these things. Under 'Beta' and with the ownership/influence/control being so centralised, they can do anything they want - or so it seems.
This particular episode steps across all lines of acceptable behaviour.
I am new to all this but I can't see that steemit is decentralize .. they act like banksters. A few greedy people using the masses. Am I seeing this right?
I think you are beginning to get the hang of it!
So many people do not want to know the truth. "Beta' is the standard excuse - but the money is not beta - steem is not in beta - it is a currency - and it is being manipulated with profiteering in mind, as opposed to improving the economy.
This is a serious allegation. As a community we need to investigate and demand answers.
The evidence is there to be seen.
As I just said: It gives me no joy to report on such matters. However, to ignore such realities is to be complicit. There can be no justification for any of it.
Following your progress.
There is always an interesting thing going on when you get more views than votes! Normally it is about 8-10 times the other way - except in my world. Steemit Inc hates me for undressing their ruses.
Namaste.
@ned and @dan @dantheman Please explain yourselves. As a minnow I am so disppointed. Here I am telling all my friends and family. New people will be leaving and you are ruining what good you created.
They wont reply because this is stupid and not worth their time. I'm replying because I'm having a drink and am bored, winding down for the night.
OK thank you ... I guess.
You're welcome, I guess?
L O L
I only joined in january, but for me Steem has been incredibly underpriced. I loved its low price as it was easier to collect Steem. The price is still low in my opinion. Should be $7 in this economy. $400 within a year or three.
@riskdebonair - a social media platform with about 2 to 3,000 punters which contains no revenue model apart from a currency which has no application as yet beyond its own borders; there are far more ex-steemians than steemians and the value is held by under 100 people. You seem to value such an enterprise at a very substantial multiple.
You are suggesting that steemit.com is worth over a billion dollars.
Your valuation - to give you perspective - is over 100 times more than the way that the market values Facebook, a listed entity with a Balance Sheet and a solid history of performance!
Fascinating stuff!
Namaste.
Good points made. Following
This post has been ranked within the top 25 most undervalued posts in the first half of May 12. We estimate that this post is undervalued by $13.85 as compared to a scenario in which every voter had an equal say.
See the full rankings and details in The Daily Tribune: May 12 - Part I. You can also read about some of our methodology, data analysis and technical details in our initial post.
If you are the author and would prefer not to receive these comments, simply reply "Stop" to this comment.