Topic: Steemit how can this thing be workable long term? - page 31. (Read 32349 times)

As the founder of Steem said...


https://bitsharestalk.org/index.php/topic,22125.msg288854.html#msg288854

So it's just a case of alt-coiners not knowing how to value companies and chasing a very tiny % of the total supply.

It's also a non business model.

Question: They're paying users for content. But where does the revenue come from to pay them?

Answer: While often in the red for a while, traditional business models attempt to earn revenue to pay for expenses and the remainder is profit. In Steem there is no revenue source only massive expenses in the form of having to pay users for content.

In theory the currency itself could ultimately bootstrap and organic demand could be created that way, enough to offset their huge costs, but given the centralised nature of the initial distribution I think it is unlikely that it will be widely popular and adopted.

(Synereo by contrast does have a business model in that advertisers pay for content like traditional social media sites but this revenue is mostly distributed among the users themselves in return for their attention. So when Synereo attracts users their value should go up, with Steem each new user is just an additional expense.)

I'm impressed it got to such a high value though and the lead dev/founder is one of the most talented around, so who knows.

Steemit plaform is for me interesting only as a social experiment. The community forming there is pure utopia. You have society of people dependant on mathematical system and feelings of other members, that together reward each participant of community. It is quite crazy actually. Everyone who will play by rules and will be supportive of system has higher chance to be rewarded. Dissent will be left for dead. I really wanna see where this will lead.

There was a discussion about that on the coinmarketcap thread. Some or all of the steemit coins are excluded from cmc's calculation similar to how the calculation is done for ripple.


Are you new around here?

I've read all 42 pages of the white paper. The whole design is convoluted. It's abundantly clear the dev team does not understand the K.I.S.S principal at all. Good luck to them getting merchants to accept Steem dollars, and getting traders to prop up the Steem dollar market for a chance at a "liquidity" bonus. Funny that one person who admitted trying to game that system for the 1200 hourly bonus ended up losing 20k tokens. https://steemit.com/steem/@blakemiles84/two-users-are-gaming-the-liquidity-reward-system-and-earning-1200-steem-per-hour
Rest assured that I will be checking into steemit every now and then to upvote here and there. Might as well milk this cash cow as long as possible until it's lead to slaughter.

Am I right in thinking that the steem currnecy was pre-mined and in the hands of the owner of Steemit?

So when they talk about Steem's market cap are they including the 60% (or whatever it is) that he owns?

For the sake of easy Maths:

Isn't this a bit like creating 1,000,000 tokens, giving 1000 away to people who join early on, letting them trade them against something with actual value so they are given a price (let's say 1 USD$ for the sake of the example) then giving new joiners 10 of them each with an incentive to buy more so they can boost each others posts and make more steem. As more people join and try to buy vote booster tokens in order to make more the price rises to 2 USD$ then the owner declares the market cap as USD$2,000,000 (original million that were mined * 2 USD$)?

I know there is more to it than that what with Tokens, Steem, Steem Dollars, Steem Power etc but they all just seem like ways to obfuscate what's going on.

Unless I've missed something that sounds like a bit of a 'dodgy' way to determine market cap.

Well, this has turned into quite the anti-Steem circle jerk. It is clear some of you have not read the white paper, as you are wrong/confused about several things. Yet, I have wasted enough time with trolls already. I am certain there are at least a couple sock puppets posting here too. It us funny that as soon as Steem shot up coin market cap all the other bag holders feel the need to tear it down to prop up whatever they are bag holding. Very sad indeed.

That's even worse than you think actually cuz most of the steem power supply is in a handful of hands. The natural course of action is that these wealthy and powerfull people would collude with each other to vote between themselves so they can get richer and even more powerfull, no different from the real world.

Even governments could buy lots of steem ( thanks to the printing press) and decide what's gets on the front page and what's doesn't. All in the name of decentralization!

Nobody is going to lock their wealth in SP when 9/10th of it is gonna be wiped out to counter high inflation rate, not even a dilution mecansim.

I don't have the numbers at hand but say today's ratio of posts getting a reward VS posts getting none is around 10 to 100. Now when millions of users uses the platform the gap will be gigantic with only so much you can pay with a mere 10% inflation.

I'm surprised more people haven't already mentioned this. It's already a huge problem with twitter (feeds are universally cluttered by garbage "parody" accounts that just repost the same tweets and videos, regardless of if you follow any of them or not). With a site that rewards users for voting with the majority and hurts them for voting incorrectly, this problem will only be amplified. Even already the content on steemit is incredibly monotone. The trending page can be summed up as guides, "steemit is my lord and savior" circlerjerks, and introduction posts. Sometimes you get crypto personalities who make posts as well, but that's rarer.

What's next on the Steem dev team agenda? Create a working prototype of a perpetual motion machine?   

The supply of STEEM is diluted to incentivize long term investment. Most Steem is created as SP, rather than liquid Steem. Unfortunately I don't have time to go into it further, but that is the quick and dirty.

There are a lot of mechanics at play, but it really is well conceived when you wrap your head around it.

I think the mechanisms are absolutely convoluted.  I guess that you can spin that as "clever."  A 10 to 1 reverse split every three years to calibrate precision? WTF is that about? Also, the "mining" is convoluted. The "miners" are not actually adding to the blockchain with their hashing. All a correct hash does is put the miner in a queue, with the hopes of being selected among the other 20 witnesses, to create a DPOS block.

Why the need to dilute the supply of steem power if 9/10 of it are wiped out every 3 year?


Another question. Posts on the steem front page are being rewarded more $ than a week ago due to the steem price rise. It means that the mecanism in place rewards the same amount of steem per posts. This creates a situation where the more content is published the less rewards each posts will get. Wouldn't it be better to reward a certain amount of steem proportionally to the current steem price, so that the higher the price of steem goes the more post can be rewarded instead of the higher each post can get rewarded. Hopefully that make sense lol

The exchange rate of VESTs to SP is not determined by market forces. It is hard coded to change over time in order to dilute the supply of SP.

You can check the current rate at https://steemd.com/distribution

Currently it is
Note that what is called SP is simply VEST balance denominated in STEEM equivalents.

There are mechanisms in that act as automatic stabilizers in the case of market volatility, by the way... We could eventually discuss those. They're very clever.

I made the point earlier in the thread that most people were converting their STEEM to SP. That's verifiable fact.

You're making things up out of whole cloth in order to make baseless accusations about it being a pyramid scheme, and impugning the character of a person who has 100% of their stake in Steem in the form of SP. He is invested for the long haul, and that is verifiable. It's on the blockchain. You can see the balance of his wallet.

The fact that the richest accounts have the vast majority of their stake invested in the platform tells you all you need to know. They are in it for the long haul.

If you actually believe that Dan and his team are evil geniuses who have created a pyramid scheme and produced a $350 million market cap out of thin air based on some kind of elaborate deception, you should at least give them credit for having a plan to walk away with something to show for it. You can't simultaneously present them as masterminds and unwitting dupes.

The simple fact is that Ned and Dan have more of a reason to want Steem to be viable long term than literally anybody. If things go south, they wouldn't even be able to react fast enough to cut and run. They're forced to do everything in their power to ensure Steemit's long term success, due to the realities of the platform's incentive structure. And so is every single other person who owns SP. At the end of the day, that's why it will succeed.

But please... don't pretend that Dan is trying to pull one over on anybody. He's not offering anybody a value proposition he hasn't already accepted himself. And he has as much or more to lose than anybody involved. That's not speculation.. it's right there on the blockchain for all to see.

It would be a fool who wants to be a bagholder in hopes of earning 100% passive interest. or whatever it works out to be with the 9:1 ratio.

Looks like there was a small hack on the Steemit network
https://steemit.com/steemit/@steemitblog/important-security-announcement-steemit-ceo-ned-scott

Clearly eh. Are you so sure everything is clear. Are you supporting this kook now?

Do you know who is doing that?

Couldn't that be Dan manipulating? Using the 80% supply to award the $10s for signups?

I read SP can not be traded, so it has to be converted to STEEM before traded, but signups only get SP.

Who would convert STEEM to SP willingly? They'd have to be a fool.

I am going to flood the Steemit site with filipino bloggers. More the merrier. As many as possible should get their free $10 of SP. We will start the viral campaign on Facebook once the Steemit site is back up from the hack recovery.

Don't so I didn't do my part to help 

That's clearly wrong in looking at the blockchain.