Symbiont{s} | TRX Reward Distribution Proposal for Steemit Inc.

Greetings!

More than three years ago, Steemit Inc. decided to introduce a mechanism to reward users who are active on Steem with TRX. The initial concept was to distribute an amount that is equal to the amount of SP gained. That value was later reduced to 1:1 ratio but was gradually reduced until it reached 1:0.25 then the distribution completely stopped. The first system of distribution was completely flawed and did not make any sense. But this, of course, would depend on the intended goal that the first strategy wanted to achieve.

We need to acknowledge the imperative need for a revamped reward distribution system to enhance fairness, prevent exploitation, and foster sustained community growth.

Key assumptions

• Steemit Inc. aims to expand its business through a strategic approach centered around incentivization to attract and retain both existing and new users.

• Despite the inevitability of misuse, the initial approach employed was deeply flawed. It inadvertently allowed farmers and users with no genuine interest in Steem's growth to amass TRX that should have been directed elsewhere. This flawed methodology is akin to leaving a bank vault wide open and unguarded, only to be surprised when the bank is inevitably robbed.

• The old canals of incentivization are not a great way to base the additional reward on them. Relying solely on factors like claimed SP for additional rewards can lead to farming behaviors, as users strive to accumulate more SP and, consequently, more TRX. For instance, the scenario where incentivization is linked to SP or APR; users may lose interest in curation, focusing instead on accumulating SP, echoing past behaviors to maximize profit without any prospective of the future. It is crucial to account for human nature when crafting potential solutions.

• Activity is another factor, someone who generated a TRX wallet years ago but is no longer active or maybe deceased should not receive valuable resources. Exchanges who are offering an earning solution to their users via stacking should also not receive TRX.

• To address these challenges and promote sustainable growth, a key focus should be placed on discoverability. The strategy must actively encourage users to stake and engage in the generation of value through curation. By aligning TRX incentivization with actions that contribute positively to the platform's growth, we can create a more resilient and appealing system for all users.

Suggested solution

The charitable distribution approach needs to cease. Allocating TRX without a solid justification is likely the reason for its discontinuation.

Steemit Inc. presently employs an effective curation approach, fostering the creation of several thriving communities and duly rewarding dedicated users for their contributions. To ensure genuine community engagement and prevent the use of automated solutions, various requirements have been implemented.

Aligned with the aforementioned goals and assumptions, the proposed distribution model for TRX should be contingent on whether a post receives a vote from one of Steemit Inc.'s curation accounts or any other account associated with each community. Once a post is voted by a specific account, then all rewards generated on that post will be paired with a TRX distribution based on individual rShares or value percentage. Other specific caps and tweaks can be added if needed.

This is going to encourage users to follow the votes by the curation account, which naturally is going to benefit users who are under rewarded, or users who are providing contributions under rigorous requirements. All users and specifically whales can simply join and vote to be rewarded with TRX and play a major role in the promotion of PoB. If someone was not being voted by a curation account, he can simply join the curation effort, considering that there will plently of contributions to chose from.

Profiteers are unlikely to join this effort, as the 50% additional percentage gained through self-voting currently holds greater value than a theoretical 1:1 TRX distribution from curating other users. However, the key advantage lies in preventing farmers and abusers from exploiting resources intended for the revitalization and growth of the community.

Our recommendation to Steemit Inc. is to concentrate on controllable factors and disregard those beyond control. It is crucial to embrace merit-based incentivization, fostering competitiveness and discouraging a culture of laziness, lethargy, and delusional entitlement. Strategies should prioritize initiatives aimed at enhancing Steemit.com as a platform, which will eventually spill its benefits on the whole Steem ecosystem.

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Thank You,
The Symbionts Team,