RE: How to Solve the Reward Pool Abuse Problem Once and For All
Think about in projects like @utopian-io. If all economy is based on tips then this type of developments will disappear. I'm considering to open source some of my projects because this is a good and sane way to get good rewards for your work.
Think about important projects (sane for steemit) like @curie. If steemit is based on tips, what is the incentive to create a curation project? All curation projects will disappear, because there is no incentive to read content.
It is easy to give a vote with good value, but difficult to give a tip because it is your money. Then, with tips, the posts will be less rewarded than the actual system. In conclusion, less content creation.
It is a different model in all ways. Give a look to LBRY (https://lbry.io/), it is like steemit but uses tips.
With your posts, you are opening an interesting discussion. Followed.
I don't know @utopian-io at the moment. I'm going to check what it is first and then mention it in a follow up post or comment.
The Steem holders are shareholders of Steemit. They have all the incentive that good content is curated on Steemit. For that purpose, they can directly pay editors to curate good content for the platform, like Medium does.
Moreover, some users can act as publications in Medium. Instead of posting their own content, they can resteem valuable content by other users. They can cut a deal with those writers to share the tip revenue.
The problem with distributing other people's money is that you eventually run out of other people's money. This is exactly what's going to happen with Steemit if they don't stop wasting $80 million USD a year in reward money.
Thank you, I will check it out.
Thank you for the feedback and follow. I appreciate it. I followed you back.
I have checked LBRY and I couldn't see a reference to a tipping system. It looks like content providers can provide their content either for free or paid for streaming. This looks pretty standard to me.
This will not be the case. In the current system, accounts like @utopian-io are giving away 6.5% of their investment away to the developers every year. This is what voting for the content of others means.
You can check my latest post for an explanation of this. The post is title Can Steemit Survive Burning $65 Million USD in Author and Curator Rewards Every Year?
In the new system, accounts like @utopian-io can tip as much of their Steem as they want.
There will be a difference though. In the current system, accounts like @utopian-io not only give away 6.5% of their own investment, but also 6.5% of the investment of other accounts that do not vote actively.
So, there's no need to worry about this.