Steemit's design flaw
let's keep a few facts well in mind here:
- Steemit is the only thing like steemit going, and despite this and other flaws, I am and will remain a fan
- Steemit represents the freshest thinking I've seen online in 2016.
- Steemit is an incredible example of the power of blockchains
- While using steemit I've gotten this wierd vibe that I'm a part of something larger. Web sites haven't given me that vibe before, ever.
- I think that this was related to the original implementation of steem power, which is no longer a part of steemit.
With that in mind, the design flaw is:
Steemit, Inc.
Below I make a case for the toxicity of Steemit, Inc's oversized STEEM holdings. Please let me know if any of my facts are off.
- Blockchains are a whole new way for people to collaborate, and are more efficient than what came before them (corporations).
- Corporations and blockchains are therefore at odds (natural competitors)
- Because corporations are outmoded, they cannot keep up and thus will have the following effects on blockchains:
- Retardant to progress
- Parasite
There is a valid argument that "legacy compatibility" via a corporation is needed for successful blockchain apps and communities. This said, any such compatiblity scheme would need to guard the blockchain from the corporation. Corps are subject to human flaws in many ways that blockchains are not, and in order to keep the chain pure, an "oil and water" type scenario must be used. Here are the results of putting soap in the water:
- Steemit, inc. owns 85% of all liquid steem but can never be a trillion dollar company
- STEEM COULD be a trillion dollar currency.
- The link between STEEM's market cap and the value of that 85% of steem serve to depress STEEM price:
If most of gains go into Steemit, Inc, this lowers anyone's incentive to invest in our platform. It also creates other skews/imbalances.
Therefore
If we are talking about nixing steem dollars (which would be as ridiculous as killing Steem Power 1.0) then we should sure as hell talk about rebooting the entire economy with less influence on the part of Steemit, Inc. Please note I am not calling for its disollution or removing it from the community, but for STEEM the chain to prosper, Steemit, Inc. needs to hold less (possibly zero) STEEM.
Let's go through a steemit, inc. zero-steem scenario for a second, think this is really well-worth doing. If steemit, inc. had no stake in the STEEM currency, it would have an immediate need for profit. Profits are needed for a corporation to stay afloat, everyone knows this. Steemit, inc. should not be in the oppositional position of needing to get funds by harming the STEEM price. This is a contradiction on my part as in the past I've praised sell-offs on Steemit, Inc's part because they fund development. In that regard, sell-offs are good.
much, much better for the chain to have its own funding mechanisms and steemit, inc to prosper from selling
- custom blog portals
- steem derivative-dev work
- Gee, I wonder if this could improve the API situation, because for once, they'd be dogfooding, instead of bitching about someone pointing out something that is PAINFULLY OBVIOUS TO ANY DEVLOPER?
- support
- consulting
- advertising
like many other prosperous open organizations.
Fear not, we have big plans for the Steemit account this year designed to address your concerns.
Really, really glad to hear that!
That is great news! Any chance you can share them? :)
Love the suspense. Can't wait to know what you have in store. :D
Dropping dimes! Dropping dimes!
I agree with much of what you are saying (though I'm not sure about all the implications) and that there is a need for open discussion about the subject. The steemit account or benevolent whale is like training wheels. Once Steem had become strong enough, I believe dan and Ned will execute a grand plan for the remainder of the account. Hopefully whatever happens will be optimally timed, will enable Steemit inc to be strong and well rewarded, will help loyal early adopter Steemians, will reach beyond Steemit to encourage new steemians and new investors. This is all about timing and balance. It's an absolutely incredible opportunity.
No disagreement.
Think action is needed much sooner than later.
We'll see what comes once the road map is released. Hopefully it will be addressed....either way, a further imminent opportunity to offer ideas and engage steemians in the discussion.
My first thought is that too soon may be before critical apps like busy are launched and bedded in....perhaps also the transition of Steemit from Beta to full production might be a good time.
Here's the trouble:
Steem's developers have been saying that Steem is ready for busy, etc for a half a year and causing massive havoc.
It is true that the huge market share retained by the developers feels scammy. Most cryptos have a small premined pool, but nothing on this scale.
And usually that pool is held by individuals and not a corporation.
It would be a flaw if that state would never change... But if you look closer, steemit inc slowly release/distributes STEEMs to the world... They should only be careful to make the distribution as fair as possible... (avoid "fake" accounts etc.)
Look closer:
Ain't nearly fast enough, and what then? Steemit, inc. is dependent on the STEEM blockchain. Bad, bad, bad.
@ned @dantheman I trust will do what is right for Steemit. IMO, burning much of those tokens should be taken under consideration if possible. I really believe this platform has potential to change the world, we need to continue to take the right steps.
Burning tokens is a very good idea and something they definitely should consider.
@thejohalfiles
I agree with you on all points, but remain adamant that serious reform is necessary. A corporation doesn't have the same interests as a blockchain and the bifurcation is palpable.
Yes. Also, if Synereo was able to burn their token supply I wonder if it is possible in our case?
Any chain can, it simply involves discarding tokens that already exist.
Thank you.
Where to invest $500
This is wrong. There is nothing stopping any Steem developer from creating better top layer applications for the Steem blockchain. If a truly great business model is created on top of the Steem blockchain that has true value and revenue streams, it adds a large amount of value to Steem, as steem becomes an underlying currency for businesses. Steemit Inc. can be a trillion dollar company given they can deliver on value propositions and create a social networking platform with revenue streams and value for investors. This post is a terrible explanation of how Corporate entities can and should deliver products on the Steem blockchain.
I should add though, that owning 85% of the Steem supply is a concern if the Steem blockchain wishes to create a platform worth building on top of.
We don't own 85% of the Steem supply. Steemit, Inc owns less than 46% (last I checked) and a large part of that is being used to fund development of the blockchain and other open source software.
It should be very clear that we do not want to retain such a large influence, it is a liability on us and on the blockchain. That said, it is very critical that that STEEM end up in the right hands at the right time.
Distributing and allocating STEEM takes time to do right and a "rush" will end up hurting STEEM.
Thank you for clarifying @dantheman.
Interesting.
I think you're wrong in your original post but not your reply to it.
The currency, STEEM acts as a proxy for a value stake in a new kind of organization that is decidedly not a corporation. I don't care about the legal bullshit, which is bullshit and designed to repress blockchains till incumbents can catch their breath.
I can hear the dinosaur corps panting-- should I slow down because they're getting winded?
fuck that, I'm a goddamn marathon runner.
As an underlying currency, there is nothing stopping other businesses creating a competitive market, just as businesses use fiat currencies in the old economy to service their profits and losses. From a business viewpoint, blockchains are a great opportunity for businesses that are willing and able to adopt them. Databases with immutability create transparency between businesses and their consumers, so much so that there is no longer a need for trust. Steemit can be thought of as a centralized organization with immutable transactions. there's nothing wrong with capitalization in a free market. Anyone can do what Steemit has done, though tokens will need to be burned if they wish to create a competitive currency market worth trading.
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Gracious bot, I suggest that you do not try to save your invovlement in steemit ever by delivering it much-needed criticism. You'll find earnings vanish when your wonder wears off and you:
When you voice those things, yeah, the upvotes, magically, vanish.
Which kinda dovetails nicely on the topic of my piece, I think..... seeing as many people read it and few upvoted it......
"Blockchains are a whole new way for people to collaborate, and are more efficient than what came before them (corporations)."
Not really. Decentralization is usually very inefficient because cooperation becomes so difficult. It's really difficult to run organization without any hierarchy.
Decentralized blockchain is not some kind of magic thing that will make everything better. It's actually really hard to build any services on a blockchain that are better than similar centralized services.
Why do you suppose folks keep trying?
There are some real benefits like resilience. Most people haven't yet understood that it's not enough to make the system better than centralized services. Slowly people are starting to realize that. There aren't really that many actually useful blockchain services currently – if it was easy to build on top of a blockchain, there would be lots of usecases by now.
Depends if you mean a potential use-case or a fully-developed use-case. See the thing about a chain is the elimination of all-too-human casual dishonesty. In this way a blockchain is an augmentation of ourselves.
I mean real world usecases. Bitcoin has proven that money can be build on top of a blockchain. Steem has proven that a publishing platform can be done. But that's about it, not much other examples.
The problem is that blockchains can only process information. Humans can still decide whether or not they use that. For example, you could make a lock that uses blockchain. But thiefs don't care if the lock is controlled by real key or blockchain – they go through the door if they want to. Or we can but our elections to the blockchain – but politicians will be still corrupted and there will be still people who don't respect the outcome.
I couldn't possibly agree more faddat, very well said! I generally share your views on the lack of quality in the API, but I can't help but think the devs have to eat their own dogfood. They're just willing to put up with the bad taste!
Also, please check out my latest article on a little DIY hardware project I made and let me know what you think.