50/50 is not always fair - Economic Improvement Proposal Opinion from a Minnow!

in eip •  3 years ago 

This post was inspired by a post by @yabapmatt - HF21 and the Steem Vision. Matt is the top Witness and has given us Steem Keychain, Steem Engine and my favourite Steem Monsters.


Now, this is one of the hottest topics on the blockchain right now since it touches one of the most fundamental features of Steem which is the rewards. It is quite an emotive issue and personally, I am taking a massive risk going into it seeing just how people with different opinions have gone about suppressing the views of others by abusing the downvote.

It is not the first time this has happened. It is one of the reasons why I am so against the EIP which seeks to enhance downvote. The EIP pretty much reduces the penalty on downvoting meaning that fewer people will be forced to rethink taking rewards from a post since it does not hurt them as much. Witchhunts will be rife in such an economic environment despite that bold statement that we all know is not true that Steem is censorship resistant.

We know that there are people that abuse the reward pool by upvoting hundreds of dollars on posts that are not really worth that much but there are better ways to go about it.

However, this is not the main thing that has me in total disapproval of the EIP.

Why 50/50 rewards will diminish the community.

Just like the real world, those who can be considered 'poor' in terms of the SP they hold are considerably more than the SP heavyweights of the Steem ecosystem.

What does that mean?

Curation rewards are solely a luxury of the middle and first class Steemians, again in relation to the SP they hold.

In a simple example, how much do you think my 133SP would give me in the 50/50 economy? That's right? Almost nothing. Cents on the dollar. However, another individual with hundreds of thousands of SP probably walks off with $5 or more further consolidating their SP.

Now, what happens to the author of that post? Imagine all those minnows struggling to create solid content and finally getting lucky and receiving a dollar on their post only for them to lose half of those rewards to curation.

Is it really worth it for an author to put in half an hour or an hour a day to create a post only to see half of those rewards taken away?

Remember, Steem is a 'proof of brain' blockchain. In that case, Steem's greatest resource is its authors. Without them, there is no content to curate. Isn't then our biggest obligation to them rather than the curators? You don't need much of a brain to curate. That is why we have bots automating that whole process which brings me to my final point.

50/50 rewards will not increase curation. Here is why?

It is in human nature to always find the easiest way to do something. It is why we have machines to make work easier. It is why AI is the next frontier. We are trying to make machines think like us, do things more efficiently and most of all do things that we would rather not do ourselves.

That is why even with the current economic model bots are doing quite well. I cannot speak of the profit margins since I do not have the data but if it wasn't profitable there wouldn't be more bots coming up each month.

Here is the problem. Bots are basically large SP holders. They have massive pools of SP delegated to them by people looking to earn passive income. Like I said before, people will always take the easiest way to wealth if it is attainable.

With 50/50 curation rewards will be massive. You think bots are profitable now. Wait till this new economic model is out. Not only will we have more bots come up but more people will rather delegate to those bots for risk-free passive rewards (remember the enhanced downvote) and especially the large Steem holders.

Not only is that a guarantee, but it will also soon be the reality if the EIP goes through unchanged.

Final thoughts

Like I said in the beginning, I took a risk posting this knowing that any disapproving whale could easily target my account and ruin me. Nonetheless, I felt a conviction to speak about it since us minnows rarely get a voice.

The essence of being in this community is that we uplift each other, come up with new ideas, invent new tools and features that support abundance. I am proud to be part of this community and I visualize a time when even I become a dolphin or whale and basically start a similar project to 'A Dollar a Day'.

It is so easy to find a minnow who is struggling to earn anything on Steem despite posting quality content. Put that poor bastard on an auto-voter and give him a dollar a day on a single post every day and see just how much that motivates him to continue being part of the community.

If we want to improve curation then the 'Hive Communities' proposal is the way to go Feedback Wanted: “Communities” Design Document. When people are in communities that they relate to they are more likely to participate, make friends and share ideas.

Look just how well the condensers have been received. I am quite active on sportstalksocial.com and splintertalk.io and my vote actually counts for something there. People are actually curating in those forums because they all have a common interest.

I hope my opinions are well received as they are well intended. I am open to criticism and rather than downvoting a post, why not post your disapproval in the comments so the validity of your complaint can be examined by the author and the community as well?

With love,

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!