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RE: Upvote Shares Level 2 (100% Complete)
Great initiative, @upvoteshares.
Just to make sure I get it: once level 3 opens, shares can be purchased as a sponsorship for others?
Great initiative, @upvoteshares.
Just to make sure I get it: once level 3 opens, shares can be purchased as a sponsorship for others?
Not really, the upvote shares are bought as a way to basically support yourself in the longer run and come along with a minnow share that you have to sponsor to a minnow and will give them upvotes until the next level is reached. It is possible to sponsors someone an Upvote Share also if you want to though.
Sorry for being so slow in understanding, but that still sounds a bit like the SBI system - or am I completely missing the point here?
It is in many ways similar to SBI yes, but I try to fix some issues I have with the SBI model.
I really like the SBI sponsorship idea and what it brings to steemit along the fact that they adjust votes based on amount of posts, but purely based on the numers and the return (for as far as I understand them) it's a total scam (I don't say it's the intention to scam).
When sending Steem to SBI you pretty much lose that steem meaning you first have to get that full amount and more back before you actually start getting a return. The program also needs new money to come in constantly to feed the old members. Because of the dead weight of previous members is ever increasing, the return for new members always gets lower. There are a lot of shares that don't post daily or become inactive which makes SBI hold up for now also because the account does and insane amount of self upvoting. Just do the math and see where the money is coming from and where it goes to and you'll see that the SBI account is the big winner in the entire story. The moment new money stops coming in and everyone still demands their votes the entire model completely crumbles and few will actually have gotten their initial investment back.
Few people actually make these calculations and since SBI is rather cheap and convenient, steem is thrown at it like crazy it's unbelievable. (It really shows how many people are in need for some consistent upvotes on their posts)
Now what Upvote Shares does to solve the issues is to have a very fixed model that will be followed (see table) that works with Powered Up SP instead of leased SP. The Steem that is send is also not lost but can be sold back based on supply and demand. The amount of shares is limited based on the account growth so everyone who steps in gets the same starting deal while existing shareholders always see the value of their shares increase since SP is put on top every new level and all account earnings translate in increasing minimum upvotes. The upvotes themselves will not be that spectacular, but they are very much fair and scalable and sustainable in time. The minnowshares sponsorship come from a different account and are limited in time, this allows for sponsorships that are still worth a fair amount but don't come at the cost of the return from shareholders.
That is well thoughtthought-through...
last week I had a conversation with some people who had actually done the math concerning SBI - or at least part of it.
I absolutely suck at math and other technicalities, so I always depend on other people to figure those things out, lol.
One of the thoughts that came up during that conversation was that sbi, because of their voting strategy, was earning a huge amount in curation rewards. I don't exactly remember how they came to that conclusion - technicalities, you know, lol - but it made sense. In the end, we weren't even sure anymore whether getting sbi shares was in our own benefit. One of my friends even asked them to delete his name from their list and donate his shares to others.
Because of that conversation, what you are saying actually makes sense. The way you explain it, I get that it's like a pyramyd scheme: as long as new people buy in, there's money to pay everyone, but when this instream of new investors stops for some reason, there will be no money. Right, I get it - as long as they are leasing SP instead of building their own, they will need new money coming in on a regular base...