Topic: Steemit how can this thing be workable long term? - page 32. (Read 32368 times)

What IF no one wants to invest but only to extract:


My point is that on one wants to willingly convert STEEM to SP. That is the salient point.

You are trying to force the market to do something and you've set the incentives all hokey fucked up by your kook leader Dan.

The free market will react accordingly.

You ask smooth if he feels having his $5 million locked up for 104 weeks is not risky. You ask him if he feels he can use his votes to insure long-term success. Hell no. He is extracting passively.

Nobody is investing to make something great. Everybody is extracting.

Now go tell your kook leader, I said he is a kook.

I am headed to the gym to do some boxing.

Edit: you can't force people to invest against their free will. By holding them hostage, and trying to force some people to always hold SP, it doesn't mean you can force value to be created. Instead the free market will suck all the value out as fast it can, because the opportunity cost is that there are better investments outside that have more degrees-of-freedom. The free market routes around Coasian barriers. So instead of the investment and effort you wanted, you will get a wasteland of extraction. Watch and remember I told you.

When I get back, I will go dig up quotes from 2013, where AnonyMint was explaining to Daniel that he is a Communist in facade Libertarian skin. I always knew he would do some kook shit like this.

How do you know that the exchange rate will adjust accordingly ? It may not, markets don't always act rational, even more so when everyone are told that 9/10 of their wealth will be wiped out

What IF....  10% os STEEM continues to be liquid?
What IF.... almost 100% of STEEM is POWERED UP?
What IF.... some IF's help us more in our FUDing attemps than others?

What IF... You are making too many mistakes?(you are obviously in hurry here)
What IF.... you are here just fuding and talking BS most of the time?
What IF.... FUDing pays much more than actually coding? (the suposedly next gen, revolutionary crypto that solves "all the problems")*cough* *cough*
What IF.... you have no intention at all to do anything else than FUD every crypto under the sun and you are just bullshiting us about "your solution"?

I'm just thinking out loudly...
Something is really fishy here about you dude...

I need to head out to gym. Note I added to this post...


Bottom line is you don't bind people in futures contracts if you want people to invest in something freely. When you create time locked bindings, you create bad effects ALWAYS.

The reason is because the system can't anneal in real-time. People view this as additional risk and thus avoid investing. Thus they can only view it for extraction, as a freebie they can parasite on. Not something to invest in.

SP tokens are locked steem tokens, why do you say that they are seperately created?  The 9 extra SP comes from the 100% steem token inflation, there is only one token that is being created which is steem. They are distributed in SP form so they can't be spent asap but they are steem tokens.

SP will observe the same reverse stock split as Steem.

You keep mentioning SP tokens, but that is confused. No such token exists. Your SP balance is the product of your VESTS tokens times the exchange rate. When 90% of the Steem in the vesting fund is destroyed, the exchange rate will adjust accordingly, and so will your SP.

I'm afraid that the three posts in response to this didn't even clear $200.00. They would have been better off trying to sell their services on Craig's list.

Bacchist has a stake, just checked his wallet ROFL not a big one tho

Just a bit more context in the debate.

https://steemit.com/girlsgonesteem-nsfw/@tuck-fheman/share-your-ass-and-earn-rewards
Lookit. It's simple. Share your ass and win a reward. This^ is what you big brains in the maths department will never understand.

SP is created alongside STEEM at a ratio of 9:1.

You said if nobody is converting to SP, it will all be STEEM.

90% is bigger than 10%.

90% of the money supply is created as SP. 10% is created as STEEM.

More SP is created than STEEM.

Get it?

Lol +1

You don't understand my post. Just try to explain what you think was disproven, then I will explain your myopia. Apparently you lack math skills.

Just do the math and assume no one converts STEEM to SP. Only 3.875% per year of STEEM will be converted to SP. Multiplied by 9. It is less than 50%. Everyone is trying to cash out all their SP over the 2 year sliding window. Well perhaps I miscalculated because of the 2 year window is it closer to 0.3875*9*9.

But it still means you have 1% of the marketcap coming up for sale every week. 1% of the marketcap as float I think is reasonably high. The current daily volume is apparently in that approximate range.

And that doesn't change the point that you who ever is still holding SP is learning to game the voting to maximize their curator rewards. That appears to be a Tragedy of the Commons, because they all end up voting together like one mind in a monkey-see-monkey-copy groupthink.

You argue that people will be disinterested in their curator rewards and instead vote their conscience or the long-term benefit of the site. I would rather think they would not bother to vote then, which was my point to smooth that people will grow weary of curating if the payout is not significant for doing so.

My point about SP versus STEEM is about the pressure is on the sell side. That SP become a larger % of the marketcap via relative debasement, means also more of the marketcap is for weekly cashing out. You don't have a mix of people who invested willing for long-term. They are imprisoned for 2 years and forced to either game the curator rewards or just become passive and wait out their 104 weeks.

It don't see how the incentives are aligned to incentivize people to invest in it. It is all about extracting from it. There is no benefit to any long-term valuation investment.

You bolded the fact that disproves the premise of your post...

Indeed on the bolded. Did you not read what I wrote:


You do your homework too pompous ass. Which means read what people write before you accuse them.

Sorry if you are offended by the FACT that Dan created a pyramid scheme.

I need clarification here.

If SP tokens are steem tokens why are they not also being reduced 10:1 ?  Say after 32 000 000 blocks 5b steem were created. Out of those 5b steem 4b are held as SP tokens and 1b are held as steem token.
If you only reduce steem tokens then you would burn 9/10 of 1b. There would still be 4b steem tokens in circulation held in SP tokens.
Now if you burn all the tokens as mentionned in the whitepaper ( 5b of them) you also need to burn the SP tokens..

I'm not saying you don't know what you're talking about, but none of what you just said has any basis in reality.

9 SP are created for every 1 Steem created.

Please do your homework before making outlandish claims about pyramid schemes.

People are motivated by their own balance. They can't control the site wide outcome. They will try to vote for the blog posts that have the most votes so they earn the most curation rewards, which is the winning game theory strategy. Dufus.

Money talks. Over time users will discuss and learn how to maximize their curation rewards. Humans are like that. We have big brains. And we are self-interested.



Pompous ass. We (collectively as a community) may know more than you. Don't assume. Discuss.

The holders of SP have a strong economic incentive to ensure that the content is of a high quality. If you own enough SP to make significant amounts from voting, and influence the reward of posts, you have more to lose by the site turning to shit than you stand to gain by "voting perfectly."

But that means that every week 1% of the SP is liquid for selling. If no one is converting to SP, then eventually it will all become STEEM which is debased 100% per annum and the curation will be dominated by the few remaining with SP.

It also appears to be a constant selling pressure juxtaposed against any speculation demand for STEEM. Analogous to miners divest BTC.

I see your point that the amount of STEEM available is only 10% of marketcap right now. So that can be another factor for price moving up so much.

Dan planned out the math of this pyramid scheme well. It is a front loaded pump with a long-tail die off.

This thread is like a case study in how the crypto community is full of folks who want to take a position and argue without understanding the subject matter.