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RE: Flagging
Well, the argument would be that if all the quality posts that you are viewing are getting smaller rewards, but all of the 'crap' is making a ton, then people downvoting the crap would put more back into the reward pool for the 'good' posts.
The bigger question then is 'why are the crap posts getting all the votes?'
If this is user led i.e. the users decide, then the 'crap' posts are actually the good posts from the user's perspective because more people are voting for them.
To you (and me) they may be crap content, but to all the people that voted for them, it's good enough for a vote.
Isn't that what this is all about?
I agree it is very subjective.
You can have cases where whales consistently upvote their friends (crappy) content at the expense of all the posts that are getting tons of engagement and upvotes from 'regular users'. So here, the posts with 'more people voting on them' would be losing.
So maybe the solution is a very simple one.
We make the voting weight for everyone equal.
No more whales upvoting each other.
No more whale hunts.
No more power held in just a few hands.
Maybe even turn it around a bit.
The more SP you have, or more rep, the more you get paid, not the more your vote is worth.
So the algorithm works out what value you are to the Steemit community, and those who are of more value get more of the rewards.
So that should make people want to keep more SP and to create more good quality posts.
Not just based on how much SP you have
It is prone to Sybil attacks. There is nothing stopping people from just creating thousands of accounts.