Why Hardfork 14 will reduce Daily Votes from 40 to 5 - My opinion which I haven't seen anyone else state!
There is but one possible reason I can ascertain why this would be implemented. I have brought up this issue previously and stated that "voting needed to be tied directly to a users SP" which I will explain in greater detail below. But first let me explain how the Voting/Steemit system currently works.
Every user on Steemit is given a small amount of Steem (Steem Power) when they join the site. That Steem is created from thin air, much like the Federal Reserve of the United States keeps "printing money" to cover our debts. The result of that is that it diminishes the value of the currency, in this case Steem. The same situation occurs every single time someone on Steemit.com up votes a post or comment. That money that is given as part of the up vote has to be "printed" or created from thin air.
As many people have noticed the value of Steem has dropped from over $3 USD a share to under $1 in the last two months. This is because of the massive influx of new users and increase in voting. Steemit, Inc. has been "printing new money" at a rate that far outpaced it's revenue (Users Powering Up) creating a devaluation of the currency.
As a result Steemit, Inc. has had to attempt to devise a method or methods to stem the devaluation of Steemit and attempt to bolster the currency and rebuild its value. They have continued to act like a Federal Reserve and continue to treat Steem (a digital currency) as FIAT (Paper/Coin Currency).
Modelling Steem after the Federal Reserve might have served a purpose in getting the Currency recognized and attracting attention to Digital Currencies. However, it is without a doubt time for them to rethink the Federal Reserve model and to revamp the way Steem is created and distributed.
Failure to abandon a Federal Reserve style FIAT currency structure will ultimately lead to the demise of Steem as a digital currency and Steemit.com as the distribution method for that currency.
There is however a solution, one in which I have posted multiple times on Steemit.com and in Steemit.Chat.
A solution that would require only minor changes to Steemit.com and should be fairly easy to implement on the Blockchain with a Hard Fork.
The solution is to tie Steem (Steem Power) directly to the users, or more specifically to their voting. In my version of Steem/Steemit all users would start with 1,000 SP. Then every vote would take away a small percentage of that SP (permanently). The only way to "rebuild your Voting Power - Steem Power) would be to Post and Comment and Earn Back the SP you spent on Voting. By utilizing an algorithm to determine Voting Weight Steemit, Inc. could also:
- Level the playing field by summarily reducing a users Voting Power as their Steem Power rose
- Ensure that no one person (even with multiple whale accounts) could control content
- Increase the voting power of the Minnows and Dolphins (who make up 99% of Steemit.com)
- Effectively redistribute the wealth (or at least the voting power) to the users who make steemit.
The algorithm would be relatively simple as well:
- If TOTAL_SP < 1000 then VOTE_WEIGHT = 1% of TOTAL_SP
- If TOTAL_SP > 1000 but < 5,000 then VOTE_WEIGHT = .5% of TOTAL_SP
- If TOTAL_SP > 5000 but < 10000 then VOTE_WEIGHT = .25% of TOTAL_SP
- If TOTAL_SP > 10000 but < 50000 then VOTE_WEIGHT = .125% of TOTAL_SP
and so on and so forth.
That would give more power to new users and unilaterally decrease the power of users as their account value grows. This would also have the effect of ensuring that new content creators have a fair and equal chance of being rewarded while also ensuring that power users do not routinely receive the majority of the rewards.
It's funny how they are implementing a similar process on June 19th. It looks like they took your advice!
well its about time
@venuspcs (imho) new acccounts are created with the @steemit account. 4,818,859.891 STEEM. And yes whales are powering down and selling.@ned etc. has sold steem and some miners have garnerd steem from the beginning. And are currently selling at a profit. In the end this acts would only spread steem to other accounts. and in the end they only have so much vests. 104 payments later and selling of this steem would stop. Also remember steem is a high inflation token. Right now I'm buying Steem. I know in the long hall having abnormaly big accounts like @Dan and @ned is outright unneeded. And they know this. Hence the power down and sales of seem
this is not accurate;
it's not being created out of thin air, it comes from the steemit account; it already exists, it's not being created when somebody signs up, it's being reallocated; big difference!
I like the thinking. I get stuck between a couple trains of thought. I do believe the whales have a right to their shares, and with hiring of staff lately etc understand the need to power down.
I want to see a system where their curation rewards eligibility as a result of their contribution is perfectly okay.... but maybe reduce the ability to multiply those rewards with multiple accounts. I don't believe it is done by all by any means.
I like the thinking though for sure
https://steemit.com/tag/@luminousvisions/safe-steemit-1-day-voting-moratorium-for-the-whales
As I understand it from @jester in the witness channel, this HF has been postponed or at least that was the position last night but I haven't been keeping up with developments since then. Perhaps someone else knows more?
They have removed the Hardfork notice/countdown from Steemd.com in the last couple hours. Looks like it is postponed.
Yes I just noticed that.
Interesting thoughts.
I continually see (sometimes great) ideas on how to fix the broken system. Unfortunately, the ones on the top have no interest in it. If you focus on what it is they are interested in, you can see the bigger picture.
World Domination? - but they will fail at that if they don't start listening to the people....LOL!
Fail? How do you figure? They have been taking millions..... thats not failure. When its over, its over. The winners walk away with pockets stuffed with cash.
Look.... cashing out. Steem price falling.
Hope I am wrong
The reasoning seems very sound . I hope this is implemented quickly so that satisfaction with SteemIt and quality of posts and content can increase. If I could, I'd give this more votes!
Thanks for the great idea!
Interesting idea. I hope this garnishes some attention
Good idea but not sure people would vote at all if they lose SP every time they vote.
That is a possibility but most users don't vote now so wouldn't make much of a difference. Furthermore it would incentivize more people to post and knowing the only way to earn is from votes will encourage them to vote as well.
How about having advertisers and we get paid by how many views it receives similar to the YouTube model and we get 50% of revenue and Steemit voters and miners get 50% then we just do away with earning from votes all together and all votes would do is make your post more visible.
Not sure how effective trying to tie an actual currency to ad revenue would be. Besides that Steemit isn't large enough to attract the volume of advertising revenue that would be needed to sustain such a system.