PSA: Steemit Inc. transfered 5,000,000 Steem Power to @misterdelegation yesterdaysteemCreated with Sketch.

in steemit •  2 years ago 

A very huge amount of STEEM was 'powered UP' yesterday!

@steemit transfered 5,000,000 (5 million!) STEEM Power to @misterdelegation yesterday. And another 5,000,000 STEEM was transferred to @steemit2 the day before.

This 'power up' reduced the total amount of liquid STEEM from 72,936,258 to 67,936,258 STEEM in one single click.

An upvote from misterdelegation?

I don't expect the account misterdelegation will be used to vote on posts directly, but a single 100% upvote from @misterdelegation would be worth $527.41 :)
One of the biggest whales around right now...


Source: Steemnow.com


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Since these were internal operations, @steemit to @misterdelegation and @steemit2, I don’t think price action on any exchange should have been affected. Nonetheless, those are sizeable internal operations, and curiosity has come to the fore.

Many here have expressed interest in knowing who @misterdelegation might be. I would surmise that it’s the same entity that is behind the originator of the transfer, namely, @steemit.

And what will the account be used for? As many here have mentioned, the name of the new account (which is so new that it still doesn’t figure in the https://steemwhales.com/ database) highly suggests that this account will be used to promote curation via delegation. As @tremendospercy said, it will be "good if they're benevolent and want to encourage great content", and I agree. Let’s hope that's what this is!

I disagree that this would be beneficial for content curation - if that's what this account will do. We've seen the results of most delegation and we've seen the results of delegation handled by Steemit, Inc.

This could just be an account reserved for account creation while the rest of the @steemit stake is "decentralized," as stated in the road map from early in the year.

Rather than "decentralization," however, I would love to see the remainder of that stake burned. I think that's the best way for the "founders" to instill some trust and confidence in both the user base and many of the crypto critics of Steem. The (perceived) unfairness of the initial mining and vast amount of STEEM collected from it has been one of the most prominent hurdles/attack vectors to overcome. It's time to burn it and move on, especially since it's no longer needed to fund account creation.

Rather than "decentralization," however, I would love to see the remainder of that stake burned.

Or, better yet, a proportionate airdrop on all users with creation dates after April 17, 2016? 😈

Edit: with a rep of 25 or more. 😇

This has been suggested before, but with all of the sock-puppet/alt accounts, fraudulent (ID theft) accounts, bots, and accounts gained via exploit, there would be no easy or fair way to do it. You would end up giving a lot of stake to scammers.

Better to just burn it and decrease the unnecessary supply that was created for a specific purpose (account creation)...which is mostly defunct.

Shouldn't the majority of those accounts have a rep below 25? I mean, if the rest of us are doing our jobs right, shouldn't that be true for the majority of those cases?

In an ideal world, sure. But even if everyone here downvoted all abuse that occurs, you still can't do anything about accounts that don't post (bots) and/or accounts that have simply exploited the account creation process. And if you move it above 25 to another arbitrary number, you're simply ruling out other users who may be perfectly legit but simply have not achieved the required reputation level.

And to add to that - which would already be messy - you'd simply be giving away a huge amount of stake that was locked up, but would then be able to be cashed out. I imagine that would have a large, negative impact on prices. Burning, on the other hand, would likely have a positive impact on both prices and sentiment.

As I stated before - the fact that this stake even exists and is in the hands of Steemit, Inc. has been one of the loudest complaints about Steem/Steemit from the crypto world and is probably what has many investors not interested in buying. If you burn that stake, then those complaints/criticisms no longer have merit and you also reduce the overall supply of STEEM by over 25%. It may not necessarily increase prices, but it at least wouldn't be a massive albatross around Steem's neck...and that's the critical element here.

It would be great if we were given a bunch of money for nothing, but it's not likely to end well.

EDIT: Another consequence of unlocking that stake and using it for curation is that it will dilute the influence of all other users. And this is already happening. It's being funneled through a few accounts before making its way to Minnowbooster, which is raking in money via Steemit, Inc. distributing their previously non-liquid stake to select accounts.

As you say, supply would be reduced by over 25% with a burn, and that would affect price positively over the long haul. However, it would benefit everyone equally on each shareholder's proportionate level, pre April 17, 2016 accounts as well. An airdrop would only benefit post April 17, 2016 accounts.

Regarding dilution of voting power, the entire amount is powered up already, correct? Meaning that it already has its share of rewards tied to it, right?

I would view an airdrop more as a second stage early adoter "dividend". Done as a surprise so as to avoid last minute bandwagoning, it would reward all those who invested real money in STEEM, all on equally proportionate terms. Scammers, spammers and the like who've managed to maintain a rep above 25 would receive minimal amounts as they normally have next to zero in their wallets anyway.

To discourage dumping and encourage long term holding, the "dividend" could have a multiyear vesting structure.

I'm not so negative on the idea, especially considering the long term necessity of a large float - reducing it by 25% would not be good long term IMO.

The lot should be delegated to me, I think, because I strive for World Peace and free unicorns for everybody.

Are you sure that you're striving hard enough? Because I don't have a unicorn yet and the world is not peaceful. How long have you been at it?

Not sure; what time is it now?

I knew it! You're not striving for world peace! Just another typical scammer!

Just when I thought there was hope for the future...


And a chance at getting my very own unicorn!

  ·  2 years ago (edited)

To be honest, the unicorns are still in closed beta, but I will be announcing an improved model that farts rainbows soon! The ICO with Unicoins will follow soon after. Don't miss it!

Edit: I was in no way expecting Ned's announcement when I wrote this.

Yeah, sure. You're part of the insider team, aren't you? How much money are they funneling to you through a series of accounts?

I don`t think this is actually good news. Someone who has so much SP will have a lot of power in the network. No one should have that much power, because he/she can also punish users like the user berniesanders.

If the account @misterdelegation is not owned by Steemit Inc. I would agree with you, but I suppose it's just another account of them. It depends on what their plans are with this account. They will probably use it to delegate Steem Power to new users. This is now being done by @steem, but this account is running out of Steem Power (689,576 SP left).

I understand, thanks a lot for the explanation.

  ·  2 years ago (edited)

I'm doubting this will be for new users, as it seems too much. As I understand it, HF20 removes the need for delegated SP for new accounts by granting a minimal bandwidth for all new users without requiring SP.

That would seem a very logical conclusion, They obviously intend a big increase in users now that MONEY is the main thing focused upon in into the webpage. Wow that's a lot of money!

That's very reasonable, and good news. It looks like preparations for continuing growth are proceeding apace.

I think it will be used to delegate to authors who write great content instead of giving it to new users. Cause if they intended to give it to new users than why didn't they send the steem to @steem?

That's a good question. I don't know.
I think it would be better if Steemit Inc. explained this transfer in advance and what their intensions with this account are. To prevent speculation. After all, this is about more than a million dollars.

  ·  2 years ago (edited)

This is very narrow-minded. Why would delegation from the Steemit account suddenly start punishing users like some whales have done in the past with their own stake?

  ·  2 years ago (edited)

because you actually don`t know what the purpose of this account is right ? Right now you only know that steemit transfered a lot of SP to one account, that´s it.

It's a pretty obvious deduction, considering that such flagging has occurred, and is as much of a threat as exists on Steemit.

However, we'll just have to see how these stakes are used. It's certainly too early to assume it's to be used for flagging, although it's also easy to see why folks might be afraid it will be. People need to fear what can cause them harm. It's the way we are able to devise strategies to avert that harm before it eventuates.

Flagging is not a threat, its a feature. If flagging wouldn't exist we would not be able to counter abuse of the reward pool.

I certainly agree it is an essential feature. That doesn't exclude the threat it represents, as @berniesanders has proved from both sides. I have lately watched @skeptic rise above being flagged into negative reputation, and, while I cannot comment on the appropriateness of the flagging that incited his inspiring example of recovery from that assault, must point out the fact of it.

You may deny that Steemers must consider the potential to be flagged before posting controversial content. I reckon it disingenuous to do so, and can provide pages of comments by others for your consideration that discuss the matter and the self-censorship it engenders.

It is the features of bullets that make them threats, after all.

to punish @berniesanders?

Agreed !

I think it is good as long as he use it for the benefit of the community.

I don‘t think so! First it is an good investment. So welcome @misterdelegation. 🌻

I agree. Rewarding high steem power to bigger whales is good. But, Steemit needs to have some kind of hierarchical pools without bias.

wow

Oh my a single owner with so much power! It is godlike and insane. Wondering what will he (or is it a real person) do about it?

Nobody seems to understand here that:

  1. Paid delegation gives you 20-30% back on investment

  2. Liquid steem converted to SP and used as in 1. will seriously lower the reward pool

So this is bad news

So you mean Steemit is delegating to an investor for an income stream? If that's right, it makes sense to me, and seems reasonable I guess.

I don't quite understand your second point about lowering the reward pool though. The future delegees of @misterdelegation will certainly have an effect on where the rewards go, but surely won't actually lower it?

Hi @andybets, you are right about the second point, i mixed it up with the news of yesterday where a massive amount of liquid steem was converted to steem power. When liquid steem goes to steem power and is being used e.g. to get 20%/year due to delegation, then this 20% will be less in the reward pool.
What annoys me the most, is that an investor can get 20-30% interest while inflation is supposed to be 10% and inflation is what makes the reward pool. It should not be possible to make more than the inflation % by doing nothing. There is an official option of 'Saving/Investing' at 2%, the gap is way too big. I understand that a big investor doesn't want to loose his money due to the inflation but now he is making profit without doing anything, that can't be good for the platform...

I still don't quite follow what you're saying about delegation giving an income though. As far as I know, there is no in-steem reward for delegation. Any 'rental' arrangement for delegated funds has to be done either off-chain or through explicit transfers.

I know when you 'power-up' your SP becomes eligible for interest payments, which are greater than the inflation rate, so maybe that's what you're thinking? If I'm getting the wrong end of the stick, perhaps you can send a link about what you're saying, as I don't know about it, and like to try and understand these things.

You can use for example https://www.minnowbooster.net/market, 20-30% which is daily transferred to your account as a reward for your delegation. It is through explicit transfers, yes.
The SP becoming eligible for interest (2-3%) is not greater than inflation rate (10%). Hope it is a bit more clear now, cheers.

I see, ok. Oh yes, of course the interest rate isn't more than 10%. Not sure what I was thinking there!

The one thing remaining i would love to dig into, is the mining/witness. Something is strange as i think reward pool is more than the inflation so my guess is that some money from mining is also coming into the reward pool. I clicked on Follow because i am sure you are going to find that out for me and post about it :-)

If that's true, it sounds pretty odd. I'd want to start from the info you have that suggests it. I know the reward pool fluctuates depending on the assignment of rshares through voting. I know that after HF20, there is some small additional mining component being considered for new account creation, but this shouldn't be having any effect yet.

Very astute observation. Could they be preparing for a HF 20 mass influx of new users? Not sure, but very interesting nonetheless. I'm very glad to see less liquid Steem out there and will pay close attention to how this new account is used.

Maybe it has to do with the coming HF20. They said it will help streamline the signup process which includes delegating SP to new users.

I guess that's why my payouts in terms of $ have gone down so much. That's way way to much steem just being flushed into the system. Not a fan

Such power, such control. It would be unfair if that power is not used for benefit of the community. Once a while, a vote of any percentage weight will do wonders for so many Steemians.

Totally agree here. We don`t know who is in control of it.

Thanks for replying. Glad to follow you.

Wow this will make the price soar and the rewards to rise

Can you explain why the price should rise? We really don`t want to have crazy dictators with a lot of power in the network. We rather want to have a lot of small whales who are protecting the network. Those news are bad news.

You are very correct.

Its for delegation

He should upvote this post to demonstrate, I don't believe it.

Oo very excited information :)

wow, just wow.
And btw thanks for steemnow, i use it on a daily basis, amazing tool.

I think the clue is in the name. My guess is that this steem power will be delegated to other users in order for them to do some good curation and help get rid of the repetitive trash on the trending page and get new and interesting posts there instead.

I am kind of hoping that @misterdelegation is a long lost relative that wants to UP vote @stokjockey as an early Christmas Gift.............Now that would be an UP Vote !!!

Lol, Super wishful thinking ;) It's my long lost relative :)

Thank you again penguin, your metrics make the difference when trying to judge the market.

I wonder if that had anything to do with this weird spike in the price of STEEM last night:

Screen Shot 2017-09-25 at 3.04.06 AM.png

Am I misunderstanding the market cap line, or did the investment in Steem get sold quick? If so, it looks like someone bought Steem at an elevated price, and quickly bought something else with it.

Strange, but perhaps a way to transfer wealth less obviously...

Nice pump and dump :(

I would love me some upvotes from @misterdelegationu uh hum

Any thoughts on why this move was made??

wow I just checked the Account ... worth over 5 000 000 $ :) Would be interesting to see what the account is used for ... misterdelegation sounds like it s used to delegate Steem Power ... by the way I would take the Delegation of 5 000 000 SP , but I m not a greedy kind of Person , so I would take 1 000 000 too.

Lol, I would be happy with 100,000 too

Even 10 000 not bad :-)

  ·  2 years ago (edited)

@ned also delegated a lot of SP to @minority-report that I believe is leasing power for users via @minnowbooster

Steemit stars are hard to reach, regards to @penguinpablo

I don't see the problem.

Either the SP is in @steemit or in @misterdelegation and @steemit2.

It doesn't do anything to the total amount of SP on steem, and thereby have no effect overall.

Let's see what they're going to do with these accounts, but I'd still prefer an upvote from @steemit.

It was liquid Steem in the hands of @steemit and now @misterdelegation has it is vested as Steem Power.

Okay, still trying to get my head around all these steem-currencies. SP, liquid steem, SBD.
I have read up on the issue, but it's not really intuitive.

But at some point I will know what's what ;-)

SBD is suppoosed to be more stable (less inflationary) than Steem, but I recently read that it is created "out of thin air" and not out of the reward pool (which is created out of thin air itself, but at least is limited in any given moment)
SBD can be used to promote posts on steemit through @promoted bot and yields a very low ROI (around 30%), as opposed to the likes of @booster, @minnowbooster, @buildawhale, @nettybot.
Steem has a very high inflation rate, for as long as I can see Steemit existing.
Steem inflation rate is supposed to decrease each year, but I bet Steemit will cease to exist before it hits 0.5% for a third year straight.
Right now it is about 9.5% or 9% a year.
Steem power is Steem deposited and quite not liquid as it requires a 13 weeks power-down in order to become liquid.
Steem can not be used to vote, it can only be transferred or powered up (deposited).

I hope I am both correct and comprehensible.

I think the virtual supply of STEEM is what undergoes inflation, and that this is then used to generate actual STEEM and SBD.

The amount of Steem grows with time.
How can it be used to generate SBD?
Either Steem is created, or SBD is created.

  ·  2 years ago (edited)

https://steem.io/getinvolved/steem-backed-dollars/
Sorry, both are created, and this results in the inflation of the virtual STEEM supply, but I think I see what you're getting at now. Does the inflation of ~9% include the SBDs created (at STEEM equivalent value), or not?

I wrote myself that both are created out of nothing, but one comes out of the reward pool and the other does not.
If you are certain that I was wrong about the second part of the statement, you may be correct.
The part you used to support your claim is that SBD is created instead of Steem, while maintaining the Steem's worth, while still reducing the reward pool?
This is the part which seemed relevant to me in the link you provided.
You are better informed than I, and I do not know the answer to your question.
I suppose you will get better answers from timcliff, or gtg.

I hope you are correct that these accounts are to properly equip new accounts to participate on the blockchain by delegating SP to them. I cannot think of another purpose for such delegations from Steemit that isn't alarming.

Now that is an Incredible amount of steem !
Early adoption can sure pay off.
Just the name @misterdelegation leads me to believe some delegation will be involved Doh LOL. Could someone explain or point me to a detailed explanation of how this works Please.
I see the transfer of SP is possable but I'm clueless as how this happens and why.
Thanks in advance.

As long as the power is used to help us all no problems

Both @misterdelegation and @steemit2 have no contents to upvote. Wonder how I can have the share of $527.41 on upvote?

We have advantages and disadvantages after this. Well I believe that this will help Steem to reach $4 faster :D

how ? could this make steem price grow ? :/

Be nice to get that single upvote lol

Good job @penguinpablo
Upvote n Resteem..

So what will it be used for, if not on people's post?

WoooooooW
this is not including the whales.
this is GODZILLA ( @misterdelegation )

It does seems good in a way if it allows other users to help.
I have seen few people who have been using their powers for negative use
hence the new users are getting tough time .
But let's hope for the best :)

So she/he would be the leader of the community. How could this monopoly of such big whales be justified?

I think Misterdelegation is an investment account... it's interesting though..

Why these accounts not use for give upvotes and encourage new and good content writers

  ·  2 years ago (edited)

Very interesting !

It looks like a Steem Power injection now that it's at a low price

Maybe @steem2 and @misterdelegation are a two new lines of business in Steemit and this is the reason to delegate those amount of capital.
Upvoted and Resteem !
Thank you very much !

Thanks for sharing! A link to your post was included in the Steem.center wiki article about Steemit, Inc. Thanks and good luck again!

This is huge. The total rewards pool per day isn't increased, but now there's 5M SP loaded up to pick up a share of this rewards pool. That simply means there's less for the rest. The biggest impact of this new phenomenon would land on the rewards for whales, since they will notice the biggest difference. So, what is Steemit Inc planning to do with this 5M SP? They called the account @misterdelegation, so it seems they want to delegate some SP to "deserving" accounts? Or at least that seems to be most likely in my mind. This wouldn't be a new thing either, we've seen huge amounts of SP being delegated already, mostly towards accounts boosting the rewards in the Asian regions. But why this has been done remains unclear. Also, what are the criteria to get some of @misterdelegation's SP? Well, let's hope to find out, I know I'm following @penguinpablo's blog closely!!

Wow what a vote. I just hope it is used for the good of the community. Someone having that kind of power is good if they're benevolent and want to encourage great content. The downside would be opinion flags. I'd hate to see that happening it's becoming a problem IMO.
Fingers crossed eh!?
Thanks for the info dude.

My say would be that it depends on the personality of the whale. If he is a nice person, he will surely use his sp very well,but I don't see anything wrong with someone holding such amount of steem

sure just look at the name mister delegation will be delegating steem like ned did I bet

Nice catch. That's one hell of an upvote!

Wow!

Why is such a transfer? Do they want to make the most of steem power?

Would anyone know the reason for such a large amount to be transferred internally?
COMMENT 1.jpg

All depends on how he will use his power... power can be corrosive even for expert politicians. I hope it will be used wisely.

Interesting to watch the SteemPower of @misterdelegation continually growing.

It is increasing by 0.18 SP every minute. I wish my SP did that 😊

Future is uncertain ...

$527 omg :O @penguinpablo tell him to give me only 10% :P lol

Great spot!

The comments chat around whether this is good or bad is interesting. We just have to wait and see what it's used for. I'm optimistic!

Pheeww that's an insane amount :D

yup

Interesting... but one would have to presume that since these are internal accounts, it probably has more to do with bookkeeping than anything. Although a username like "misterdelegation" suggests it might have something to do with leasing SP... I guess we can but watch and wait.

Amazing!

Congratulations @penguinpablo!
Your post was mentioned in the hit parade in the following category:

  • Comments - Ranked 7 with 96 comments

Do you think that instead of the purpose of @misterdelegation being to upvote with a significant amount of power it rather is for delegating SP to some other accounts? I still have to learn how delegation exactly works. For example delegated votes so to speak, do the also count towards the one who is delegating SP?