Upvote Shares | Terms & Conditions

in #steemit2 years ago (edited)

Upvote Shares is an experiment that aims to provide daily upvotes to shareholder based on a predetermined model in a way that should be fair, extremely transparent, scalable and sustainable over time. This post contains all the details on this project and the terms and conditions everyone who wants to join has to agree with.


The @upvoteshares account is split up in equal shares that each represent a minimum daily upvote % from the account. All shareholders will get daily upvotes based on how many shares they own. The amount of shares and the price of each share are directly linked to the Powered Up SP in the account which makes it all very measurable and predictable. There will be many mechanisms in place that increase the value of each share over time.

Model numbers

Every time the @upvoteshares account reaches a specific amount of Powered Up SP, 50 new shares become available (OPEN).
At any given time, the amount of SP in the account will at least be 10% higher compared to the amount of shares times the price of each share. (Example Level 2 Price = 3.320 STEEM | Minimum Powered Up SP in Account = (3.320 STEEM x 150 SHARES)x1.1 = 547.8 SP
Because of this mechanism, the price of new shares and value of existing shares will always increase while at the same time providing the ones who join a similar entry value since a minimum of 10% will always be in the account on top of what has been sent to it. Some of the Value Creating Mechanics are...

Steemit allows for 10 full 100% upvotes that recharge every 24 hours which makes the upvote worth for each share 1000% divided by the total amount of shares in circulation.

This the bare minimum in case all shares are active and make use of their daily upvote. There will be a lot of "value creating mechanics" for shareholders which should drastically increase this number. The program aims to give at least a 10x self upvote that could be done with the steem that was send for a share.

  • Rising Share Prices
    Since the price of the shares always goes up, existing shareholders alway see their minimum return increase each time a new level is reached.

When Stepping in on Level 2 there is at least 10% extra in the account compared to the paid price for each share. When the project reaches level 10 there is at least 25.9% extra in the account based on the price paid for each share at Level 2.
  • Added Funds
    At least 10% extra STEEM will always be added on top of what comes in, this should highly speed up the overall account growth and increase the value of the shares from existing shareholders.

  • 1100%+ Distribution
    All the upvotes from shareholders that are not being used are redistributed to existing members. This means the total daily account upvote percentage can be set above 1100%. Only quality Steemit members will be allowed into this group which means that missing an upvote supports solid accounts while each upvote you get includes support from the shareholders that did not use their daily upvote.

  • Inactive Shares
    The program will make sure there are always inactive shares that don't count towards the total amount of shares which increases the minimum upvote % for each active share. Inactive shares are reserved for future giveaways or simply just shares that get destroyed by the program. Out of 150 shares at Level 2, at least 50+ will be inactive !

  • Destroyed Shares
    People who end giving up on Steemit and sells their shares provide value to existing shareholders since part of their share gets destroyed. (See Below)

  • Pre-Funded Levels
    Every new level starts off close to the next level being reached since the first level got funded in advance and new steem that comes in directly Powered Up. In the early stages this makes a huge difference and provides a lot of extra value compared to the minimum promised upvote!

  • Extra Personal Investment
    The idea is to grow the account on a consistent basis and there will likely be more investments on top of the 10% extra to make this happen.

  • Minnow Shares curation rewards
    Every Upvote Share will come along with 1 Minnow Share that can be sponsored to a minnow. These Minnow Shares will give the sponsored minnow upvotes for as long as the level runs from the @minnowshares account which has 500SP in it. Curation rewards from this account can be used to grow the @upvoteshares account.

  • The @upvoteshares account follows shareholders
    This will increase the followers_mvest a bit for each shareholder which is a number that can get you bigger upvotes from other projects that give out upvotes

  • Free Resteem
    All shareholders that have a minimum amount of shares will be given 1 resteem on the @upvoteshares account during each level of an article of their chosing where they want some more exposure on.

  • ...


Every time the next level is reached and 50 new shares become available, a post will be made on the @upvoteshares account with all the info. Everyone who wants to acquire shares needs to apply for this in the comments and will get their request is granted or not.

Who Can Join ?

The amount of Upvote Shares is very limited and only Quality Steemit Members will be able to get in. This means having a long term mindset while also giving some support to the Steemit Community and making real content.

Maximum Allowed Shares

This model can be seen as a way for Steemians to give their own posts some basic support. The maximum amount of shares a single account can get is directly related to the amount of support they can potentially give to others. For every 40SP Powered Up (that is not leased out for selfish reasons) 1 Upvote Share can be acquired (Locked Shares do not count towards the maximum allowed shares.)

All accounts below 40SP can not buy any Upvote Shares until they reach that level and are in a position to give others support first. Someone with 2000SP can potentially buy all 50 available shares in a level, but will be limited to a 100% daily upvote. All the inactive shares will increase the upvote worth of all other shareholders.

Shareholder Behavior Changes

Shares can become inactive in case an existing shareholder change their behavior and no longer meet the above minimum requirements.

Examples:

  1. Someone with 1000SP gets 20 Shares but decides to lease 800 SP to a bid bot at a later point in time. 15 of his shares will become inactive.
  2. Someone with 1000SP who has 20 Shares changes his content systematically to quick 1 picture posts. 20 Shares will become inactive.

It is not the intention to make this a witch hunt and a notice will be send out in case someone makes a questionable behavior change. In case it ever comes to a dispute, a case will be made and existing shareholders will be able to vote on the outcome.


Entry Cost 0.300 STEEM / Share

Every Share will come along with a 0.300 STEEM Entry Cost. This amount will be fully used to buy a 90 day delegation to increase the initial upvote worth and it also allows for a Minnow Sponsorship (see below).

Exit Cost 0.200 STEEM / Share

Shareholders will have promised ownership of their Steem that got Powered Up in the account. There will never be Power Downs until the project decides it's better to stop or is forced to stop somehow (see below). It is at any time possible to exit the group and get your invested STEEM back by selling your Shares to someone else. (There will be auction posts on the @upvoteshares account in the future to do that) As a mechanic to prevent too many of these time consuming transactions and a way to create extra value for existing shareholders, 0.200 Steem worth will be burned from each Share that is sold. Buying from someone else instead of from the program does not require an entry cost, so should always be a demand because it's cheaper and the supply is limited.

Example:

  • Someone Gets 1 Share at level 2 for which was paid 3.62 Steem (3.32+0.30)
  • They want to sell their share at Level 8
  • The price of 1 share at level 8 = 3.68 Steem
  • (3.32-0.200)/3.68 = 0.85 Shares at current Price
  • 0.85 Shares worth around 3.12 Steem can be sold based on supply and demand.
  • The new owner gets 0.85 Shares worth 3.12 Steem which he will also be able to sell with at a 0.200x0.85 = 0.170 Steem exit cost.

This is basically a small cost for shareholders that give up on Steemit at the benefit of existing shareholders since the amount of shares go down which increases the value of each share. It will always be possible to recover the majority of the invested Steem when exiting.


Every Upvote Share comes along with 1 Minnow Share that can be Sponsored to a Minnow. This Share will put the minnow on the upvote list from the @minnowshares account until the next level is reached. (~3 weeks / 1 month). A minnow that manages to collect 6 Minnow Shares will be able to claime those for an Upvote Share that has been reserved [ See Level 0 ]. The amount of Minnow Shares needed to claim 1 Upvote Share will increase over time. Everyone who wants to claim and Upvote Share needs to meet similar quality requirements but does not need a minimum amount of SP.

Everyone can choose who they Sponsor with a Minnow Shares and they can also be given away in a contest. This contest will be resteemed by the @minnowshares account so minnows that are interested can easily find them.

The idea is to have a 2 week delay before minnowshares become active so everyone has plenty of time to choose who they will sponsor...

There are some rules in order to prevent potential abuse.

  1. Sponsorships can only given to account that own below a specific amount of SP (leased SP does not count). This amount will be specified for every new level and will depend on the Steem Price at that point. Someone who has at least 1 Minnow Share and has grown above the specified amount can still be sponsored up the point where they reach the amount of needed shares to get an Upvote Share. (The idea is to have it set somewhere around the SP that is needed to get the voting slider which right now is 500SP, it is unlikely to go lower and will be set higher when the price of Steem is low)
  2. Sponsorships to suspicious double accounts can be rejected and lead to a ban from the Upvote Shares Project!
  3. Maximum 2 Minnow Shares can be Sponsored to the same minnow during a level. So getting 6 Upvote Shares and sponsoring 6 Minnow Shares to the same Person which he can instantly turn in for an Upvote Share is not allowed. 3 People Getting 2 Upvote Shares each and sponsoring them all to the same minnow is allowed.
  4. A Maximum of 3 Upvote Shares can be converted from minnow shares by the same account.
  5. Not giving away the sponsorship is allowed and will increase the upvote worth of all minnows who did get sponsored that level.
  6. If you give away your Sponsorship with a contest, make sure the winners are somewhat quality members.
  7. Someone who bought 1 or more Upvote Shares in a specific Level can only be sponsored 1 Minnow Share themselves in total during that same level. (this to prevent circle jerks)
  8. Getting Multiple minnow shares in a single level increases your amount of minnow Shares but does not give a bigger upvote from the @minnowshares account compared to someone who got sponsored 1 Minnow Share.

This project does not promise "Upvotes for Life" but Upvotes for as long as the project will run. The intention is to continue the Upvote Shares Project for many years, but there are a some scenarios I can think of which would make it come to an end.

In case it ever comes to an end, everyone will be able to claim their Steem back during the Power down Period without any kind of exit cost.

Example:

  • Someone Got 1 Share at level 2 for which was paid 3.62 Steem (3.32+0.30)
  • After 3 years the project somehow comes to an end at level 34
  • This gets announced very clearly with multiple posts and personal messages to shareholders
  • The power down is started.
  • The 3.32 STEEM can be claimed and will be send back during the power down project.

  • Downtime

    The Project will start off using Steemauto to spread around Upvotes which has been quite stable during the testing month. Downtime can always occur and over time another way to spread the upvotes might be needed. I will do what I can to make the upvotes as consistent as possible at any given time. There will also be a post where missed upvotes can be reported so they can still be given manually.

  • Voting Power

    The voting Power during the test periode often was close to 100% leaving some of it unused despite having the total daily vote percentage at 1300%. I rather give bigger upvotes which potentially brings the voting power down to 80% at some point and pauze things to recharge instead of letting some go to waste. This would be more optimal in case steemauto has some downtime which gives time for a full recharge. No matter what, the Upvote worth for each shares will always be at least 1000%/ total shares.

  • Voting Percentage

    The minimum required voting % is 1% and falling below that will see shares become inactive. Since the amount of shares is limited this will unlikely be an issue for the next 2 years though. Voting percentages will be rounded up or down ( Example: The calculations show a 13,72 % upvote this will become a 14% upvote. In case of 13,42% it might become a 14% upvote.

  • Self Voting

    Post made on the @upvoteshares account will be self-upvoted only when the voting power allows it and all shareholders get upvotes that are enough above the minimum guaranteed upvote worth. The test month showed that some earnings aside from curation rewards really make a difference when it comes down to growing the account much faster which benefits everyone. No upvotes to other than the shareholders or the @upvoteshares account will be made.

  • Post Earnings

    Earnings from posts made on the @upvoteshares account will be used to grow the account by powering up manually or by using bid bots to power up more efficient. They can potentially be used to pay server costs in case they ever arise (no costs now). There will be no cash outs before level 34 is reached unless the project somehow ends.

  • Upvote Timing

    As for now minute 24 will be set as the timing to give out all the upvotes. This will change with hard fork 20 but it will never be the intention to take as much curation awards away from a post as possible.

  • Rule Changes

    The objective for this project is to be fair and satisfy every shareholder at any given time. If there is ever a need for a rule change it will come with a proposal which all of the shareholders can give their vote on.

  • Sponsoring Upvote Shares

    It is possible to sponsor someone with Upvote Shares as long as the sponsored accounts meet the quality requirements needed to be part of this project.

  • Locked Shares

    All shares that are given away by the program for promotional reasons or as a way to convert Minnow Shares into Upvote Shares are locked and can never be traded or claimed in case the project stops.

  • Transparency

    This project aims to be as transparent as possible. At any given point it will be possible to find the amount of shareholders, delegation, inactive shares which will all be kept in documents that are posted each time a new level is complete [Level 0 / Level 1] At any given time it will be possibe to calculate the upvote worth in relation to the share price.

  • Reserving Shares

    I don't know how quickly levels will be fully filled once they become available. It will not be first come first served, but the more community driven accounts will get priority and will be able to reserve spots before a level opens so they are sure to get in.

  • Shares Split

    If it ever comes to a point where the price of Steem gets too high, it is possible for the shares to split which means everyone sees their shares doubled while the price goes in half so everything stays the same while fixing the higher price issue.


This project for as far as I know has one major flaw which is the central failing point of the person who holds the private key. Steem needs to be send in order to take part in the project and nothing but a promise that the Steem will be returned if the project ever comes to an end can be given. Unfortunately there is no other way and it is a matter of your judgement if this project is trustworthy. I have no intention whatsoever to scam anyone and aim for everyone to be satisfied being part of this project from start to finish. The master password of this account is also kept offline at all times to minimise the chance of this account ever getting hacked.


I tried to be as complete as possible with these terms in conditions so they include everything needed to settle any potential dispute in the future. Please let me know if there is anything unfair, unclear or missing in this post so I can still adjust things before the project starts.

Sort:  

Does a person need to be invited to join? Or can they just start sending Steem and the shares are assigned? The article says only quality Steemians, so I'm assuming there's a vetting process, but I wanted to check.

I'm interested in joining, so if there's approval needed, I would like to get on the list.

Thanks!

You don't need to be invited, but you need to be approved as someone who uses steemit in a responsible way which will be no problem for you.

The maximum of shares will alway be linked to the SP someone plans to keep powered up without it being leased out. In your case right now that would be a maximum of 7 active shares that can be traded (551SP - 250 SP) / 40SP = 7,5

A post will be made on this account when level 2 opens so keep an eye out for if if you are interested to join.
Thanks

I'll keep my eyes peeled. Just tell me when it's ready and hopefully I'll have Steem at that time. :)

A very clear explanation of the program! Guess I will have to save some steem to buy myself some shares!
Good luck with it,
Peter

Thanks Peter, it took forever to make but should serve a good purpose going forward. Feel free to let me know how many shares you want from Level 2 so I can make sure to reserve them.

Any ideas around when I should have the Steem available? I would like to have 5, which would cost me around 16.5 steem. I should be able to collect these within 2 weeks!

The account pretty much reached 548SP so Level 2 can be opened at any time, probably tomorrow. 5 shares in level 2 equal 18,1 STEEM (3,32 STEEM + 0.300 STEEM Entry cost for each share). I will reserve them and loan you the needed Steem if you want. The Post when Level 2 opens will show all the numbers of what each share provides, you can still make up your mind once it is out.

Let's make that a deal! Reserve me 5 shares and I will pay you some interest on the loaned Steem. Sound 18.5 Steem good to you (0.4 for the loan).
Thanks.
Peter

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I updated the Terms & Condintions

  • Maximum SP in order to be able to get a Minnowshares Sponsorship will be specified every time a new level opens and will depend on the Steem Price.
  • To prevent Circle Jerks, only 1 Minnowshare can be sponsored to someone who also got an upvote share in the same level.

II removed "To counter this entry cost, new members can be given a higher % of the unused and inactive votes until the next level is reached." from the terms and comditions. While I was making the post on Level 2 to open I realised how overly complicated this idea would make everything from a practical point of view. Each share having the exact same voting % seems a much better solution.

I added for practical reasons:

The idea is to have a 2 week delay before minnowshares become active so everyone has plenty of time to choose who they will sponsor...

I added this to cover a potential longer term "issue"

  • Voting Percentage

    The minimum required voting % is 1% and falling below that will see shares become inactive. Since the amount of shares is limited this will unlikely be an issue for the next 2 years though. Voting percentages will be rounded up or down ( Example: The calculations show a 13,72 % upvote this will become a 14% upvote. In case of 13,42% it might become a 14% upvote.

I also added this detail

  1. Getting Multiple minnow shares in a single level increases your amount of minnow Shares but does not give a bigger upvote from the @minnowshares account compared to someone who got sponsored 1 Minnow Share.

I changed and adjusted this line a bit.

You can only sponsor 1 minnow share to people who also bought an upvote share in the same level. (This to prevent circle jerks)

to

Someone who bought 1 or more Upvote Shares in a specific Level can only be sponsored 1 Minnow Share themselves in total during that same level. (this to prevent circle jerks)

Sounds too good to be true! I'm in, Shut Up & Take My Money!