RE: What I Really Think of Steem - Truth Talk
I agree with you to a point, except why RCs are truly “free” is due to the fact that they regenerate, not due to the fact of the initial delegations.
Yes you are absolutely right that the actual cost of each transaction will increase as transactions on the chain do. Meaning when mass adoption levels took place it would cost a lot more RCs to transact than it does now, as you said.
They are free because while I have to have an amount staked to use the chain, I am allocated a certain amount of RCs to use based on the staked amount.. and they regenerate each day.
So yes if I was a person who wanted to build a game let’s say, I may need to invest 100k SP (random number there) to allow my users to transact. But at any time I can power down and remove that 100k SP.. it doesn’t cost me something out of pocket for each transaction. It’s more like a deposit to use the chain, imo.
You’re right, the value comes from RCs needed to use the chain, and you’re right it’s sort of a pay to play model.. difference is you get you money back.. just simply cash it out.
My understanding of ETH is it’s a pay per transaction set up, and it does not regenerate. You pay for each one, out of pocket.
I understand that ETH’s transaction volume is much higher and therefore the cost of transaction is. I just wanted to explain what I meant by “free”, as it wasn’t due to them being cheap (as you are right, that changes with increase of transactions), rather that they actually regenerate so costs nothing out of pocket in the end.
Also, just wanted to be clear - I’m not debating either, or saying which is better.. actually I quite enjoy the conversation, so don’t think you are offending or anything! 🙂
I understand how you see the RC system and it is a legitimate viewpoint.
You might have the opinion that it is similar to buying a solar panel for your roof, which then provides access to energy over time. That certainly sounds reasonable. But solar panel businesses seek for supply to match demand, STEEM is not like that.
Here is my concern. The game is not about getting rich by selling everyone 50 SP for sovereign blogging, but about being early so that they can charge people for RC delegation. I believe the RC delegation will cost more than ETH2's fee market because in Steem there is a middle-man (RC delegator) involved.
A self-sovereign blogging platform allowing people to have censorship-resistant free speech is important, so Steem is valuable. But what if the majority of Steem Power ends up in the hands of a small group of entities? If they can choose who gets RCs and who does not, then you have a deplatforming issue all over again.