You are viewing a single comment's thread from:
RE: @haejin rapes the reward pool...
Completely agree. And since the code is in the hands of Steemit Inc, that necessitates leadership in place that recognizes the deficiencies of the platform and acts to address them.
As an example, the free market has expressly conveyed that the peg of SBDs to $1 USD is unenforceable due to natural supply and demand pressures. Similarly, the community here has pointed out on numerous occasions the gaps that must be filled in the rewards distribution to improve the user experience.
It's time that their voices be heard. And I am certain that the sooner this is done, the sooner steem as a blockchain is deemed more respectable in the crypto space and the sooner its valuation will align with such an improved image.
With a supply of less than 7m SBD currently it’s too early to judge over the peg. SBD will/should lower as every day more SBD and less SP is issued. Subsequently STEEM will go up and the price of SBD will go down as you get always less STEEM for your SBD because STEEM will be in much more limited supply eventually.
You seem to forget that Steem isn’t even 2 years old and that Steem isn’t a social media network alone. Definitely not if ever we also get SMTs.
Social media, actually much more User Generated Content (like blogger/blogspot and more modern Medium) is closer to Steem than social media.
Early days. Much can still change.
The witnesses could decide to change the rewards structure to use a different model.
The initial characterization of SBDs when the steem blockchain was first introduced does not align with free market supply and demand forces. The fact that SBDs have been trading far above their originally defined peg for nearly two months demonstrates this.
Furthermore, the SMT White Paper specifically says on page 14: "Initially, smt_creation_fee will be set to 1 SBD, and no means will be provided to update it."
So there is a dichotomy presented here. The market has acknowledged this and has bid SBDs up in light of their supply scarcity. It's to be expected, if in fact the forthcoming roll out of SMTs will require their possession in order to be created.
I understand that steem is just under two years old as a blockchain, but so is this community. I distinguish between the blockchain and Steemit; the former has potential that has been demonstrated, as evident by Utopian, Dtube, and the future roll out of SMTs. Steemit however has lagged in its development. I do hope that discussions such as this will push for things to change for the better.
As the price of STEEM goes up less STEEM is issued and more SBD every day. Currently we are at an 80/20 SBD/STEEM split (84/16?).
It is too easy to make an experience more awesome than anything Six Flags could deliver if the marketcap (by design) is only $6.5m.
The Steem blockchain has a very smart design, a smart design to become a real life economy. The peg matters in that but the peg will first require much more SBD to be issued. And that will take time. As the issuance of SBD is defined by the STEEM price feed.
Focus on free market impact on value of SBD right now is irrelevant an argument. That even more so because of the massive bull the whole market has experienced, and lateral movement of money towards altcoins too.
There is no guarantee that right now any trader, who are enjoying the last 6 months, even understand the design, function, of STEEM. And there’s no need for them to do so either... only 6.5m coins right now. That’s a traders paradise.
Volatility guaranteed with less than US$1mm needed. The daily trading volume of SBD in coins is very low. For all we know it could be just 4-5 cryptowhales riding plenty of awesome (for them) waves.
Addendum: Steemit isn’t supposed to be awesome. Steemit was the centralized initial roll out. Steemit, by design, has much room for improvement.
Because the future of STEEM shall not depend on steemit. The future of STEEM is thousands of sites operating with the blockchain. The “poorer” Steemit is (while still functional), the lower the step-in for new interfaces.
Steem Inc, by virtue of the amount of STEEM they hold are as such much more interested in the blockchain than in Steemit as well. Think about it: Steemit is not supposed to be the most awesome experience. It would leave less room for other interfaces to join the fold.
Removed
The thing is... you need to make sure you understand what is said before waffling a platitude.
Added the reply to the relevant comment
The thing is, that if the witnesses wish for it, they can completely ignore the developments (or their lack of), and apply a hard fork that they think is right. Steemit Inc influence is limited at this stage of SP decentralization
I'm not clear what the Witnesses even do. I understand that they maintain the technical and server back end of the blockchain, but I am not sure to what extent they actually thoroughly reassess the underpinning of it all.
For example, in a recent post, @jerrybanfield recounted an interview he did with @aggroed. They are both Witnesses and expressed support for the value of SBDs recently climbing far above the originally intended one US dollar peg as outlined in the Steem White Paper. So I asked them to clarify what exactly they are doing regarding the misrepresentation of SBDs as initially conceived when steem was introduced in 2016. Still waiting on a response.
Well, witnesses can affect SBD price in 2 major ways:
1: increased supply which should decrease it's price, through their pricefeed.
(Check steemian.info/witnesses to see each witness' price broadcast)
2: the top 20 witnesses are in charge of accepting or rejecting a hardfork, if 17+ of the top 20 start using the new version, than the rest of the witnesses will have to follow through.
Bonus example: The witnesses also set the interest rate on holding SBD, in case SBD falls too low, they can increase is from 0% to motivate people to HODL it.
Also witnesses are Steem's version of mining, using delegated proof of stake. Where votes for witnesses increase their chance of mining a block, similarly like more GPUs increase the chance of an ether miner to find a block.