Topic: There is a flaw in steemit but everyone is silent about it. - page 2. (Read 1529 times)

The rate of inflation is around 300% today and will stabilize around 100% in the future. Even at this rate people who power down every week will  have their steem power balance gradually increase. Something that keeps growing when you keep taking things out off is by definition unlimited which is the case here, people will be able to cash out every week and still have their steem power go up, that's unlimited.

Satan is a fanatical Christian

https://en.wikipedia.org/wiki/Antichrist

The supply is not "unlimited", it's all in the White Paper...
STEEM inflation only last for 3 years or whatever and then tapers off.

You are absolutely right that there is a "redistribution problem"...
STEEM is being redistributed so slowly that it doesn't fucking matter.

It's not a "ponzi", it's a "bad investment"...
And it's usually perfectly legal to create "bad investments" and sell them to greedy retards... Bitcointalk = Retard Central.

They have been very open and have stats coming out the wazoo...
Steemit owns about 50% and 34 people own another 41.5%... so 35 people own 91.5%.

I got all my STEEM basically for free by trading, mining and rewards...
So I really don't give a shit what happens and am bored to death with the sick Whale Cult...
And the Pinhead Cheerleaders that populate a platform full of zero value amateur blogging...
I mean, what kind of person would eat a bag of dicks for $0.02 on Steemit.

But I don't think Dan and Company are evil, Stan is a fanatical Christian...
Can these guys really be this lame? Have they not thought this through? Are there no surprises in store?

Me, personally, I would hard fork a massive redistribution to the Top 1000 contributors...
That would create a dynamic community with actual skin in the game.

Makes sense to me.. i figured it was rigged and badly from the start.

They will probably do it when the price is 0.001$.
Dumb people need to learn the hard way.
To me steemit was a ponzi from the get go.
I agree with your analysis though. When trading cryptos there is always a certain price point at which selling doesn’t make sense but with steemit it always make sense to sell due to the ever growing number of steem power




Sorry for the clickbait title but I have tried to start a discussion twice on steemit on the same subject with no luck so trying out here


Recently I was discussing with @smooth and he told me that the whales selling is a painfull necessary process to redistribute power. This is not true. First there will always be new whales so this process will never end.

Secondly  you can set up a system where as soon as people start powering down they stop receiving interest. This means that when whales decide to cash out, a lot of their interest is going to all the other users. The more whales power down the quicker the redistribution of power ( basically the same as today with a major difference which is that the price will not keep going down because many people will be incentivized to not power down )

Dan is trying to save the ship by creating a lot of small features ( promotion, option to be paid 100% in steempower, ) but this doesn't help because the people currently crashing the price are those who already have steem power and unlimited amounts of it.

Unlimited? That's right, the flaw is that even when you power down every week your balance is still increasing so basically people have unlimited money which means they have unlimited ressources to crash the price, so with this system the price of steem can only go down, it is basically design to go down. BUT the price reflect how many people can this platform support, the lower the price the lower number of people it can support, it is the indicator of the health of the system.
As we have seen the price of steem is designed to go down overtime because there is no good reason to not power down as your balance keeps increasing anyway, so how does steem expect to support all the new people in the future? It can't . Before trying to promote the site dan and the team needs to get the system right, as it is now it is contradictory and not sustainable.

You need to create some kind of scarcity feeling about steem power if you want to increase demand, and get a healthy steem market/price. The balance of people power down needs to decrease over time.

As it is now speculators have no reason to speculate because they know that unlimited supply means the price is going only one way and that is down, if you stop interest when people power down speculators will re enter the market because finally there is an incentive to stay in the system.Whales that keeps powering down for months will have their balance gradually go down which is normal.

But the system today where there is unlimited supply means the price will always go down and no one is going to buy it.

Don't listen to people who say that the only way to distribute power is to crash the price to pennies, this is totally not true and if the big whales and founder of the system don't push for a change then you know they have no intention to make steem a success, what I demonstrated above is not rocket science, if you have unlimited power to suppress the price the price will always go down and it will accelerate as more steem is being produced, anyone with basic logic can see that in its current form steem is not sustainable. Stop giving interest to people who power down and you solved both the price and the redistribution problem

I know i am repeating myself but this is a huge issue that is not discussed enough and I have no heard one reason why this shoudln't be done, so please tell me?

How do you support the system when it's price is designed to constantly go down? It's like the project aims at increasing user base but the underlying system aims the opposite..


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Above was the post that I wrote on steemit.  I read in this forum a lot of accusation of ponzi scheme. I don't know if I agree yet but what I can say is that it looks like the rich people on top don't seem to want to make steemit better otherwise they would have at least engaged in the discussion.
Hopefully I can find some steemians here that want the damn thing to work out so we can discuss these thing.


A MESSAGE TO THE WHALES: You might think that such proposal is against you but it is absolutely not. With the current system the money you are cashing out is gradually decreasing and will continue to do so. And you will only have a few months left to cash out until the price reaches $0,0001 and no ones want to buy steem anymore.
However if we remove interest to people who power down you won't have this rush feeling that you need to get out asap, the incentives will be in place to support the price of steem long term and you will have years to cash out and it will be at much higher price per steem. Traders will re enter the market which will create a positive feedback loop, the price is everything and dan has made the mistake to think that the price of steem don't matter as you can lock steem in SP to prevent inflation, this is totally wrong. The price of steem is equivalent to the capacity of steem to grow. In a way it's similar to the amount of capital a company has. A high price of steem means that more people will be rewarded on the platform which is essential to grow the user base.