Dear @haejin: The Dark Future Of Steemit If The Reward Pool Hits 0

Many on this platform do not know what the reward pool is and unfortunately there is a property of the reward pool that allows it to give your upvote its value... and if the reward pool dries up, so does the value of you vote (whether it be at +100% or -100%)

Yes, if the reward pool balance hits 0, steemit will no longer work.

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I write this post from so many stating things such as the following:

I would not want to earn money at the expense of other.

or

If they were upvoted to that value then they deserve the reward.

and so many more.

You see steemit was made with a major flaw which is that the formula the system uses to calculate the value of the upvote requires there to be steem in the reward pool balance, and as of writing this 705,795.715 STEEM remaining in the reward pool (this will increase depending on the rate that the witnesses are filling it and the rate at which posts are being rewarded) but what is more troubling about this is that this will only work had there been an indefinite amount of STEEM in the first place... but there isn't. But my prediction is that steemit will fail long before the reward pool is completely drained for 1 major reason, the cost will rise but with the reward pool decreasing in size a single upvote of a specified value will cost more and more until even the largest whales have difficulty creating an upvote of greater than $1.00 and by this point everyone with a stake, and a brain, will sell out. I'm talking about 60-70% dropping the price to nearly 0 and crashing the economy, but even worse is that there will be no way to distribute the wealth away from the exchanges meaning that all of the power will effectively be held by 5-6 entities. It doesn't have to end like this, and the witnesses have the ability to modify things. First of all, if the reward pool starts decreasing too fast they can decide, together, to start to fill it up faster and therefore deplete the total amount of Steem in creation that is saved up, which will buy them time but as the steemit userbase grows they will need to make changes. Next changes that come will be changing the method of rewarding such that rewards, even from larger users, is smaller period, not just changing around vote weights but having a fork that changes how voting actually works altogether, yes they technically have the power to do this. This might work but many will start to sell out so the third and final option is to modify the blockchain to allow for indefinite proliferation, as in the ability to mine steem tokens that never existed. The rate at which new tokens will be made will have to be directly proportional to the demand on the reward pool thus requiring a method implemented for the destruction of tokens as well. This will not crash the price but force regulation which will make people not want to sell out as suddenly their tokens will be worth a regulated amount, but some will still sell. This may be the pessimistic view of the future of steemit but it is a potential future. You see we all share the same reward pool and when users, any user, takes around 5000 steem a day from the reward pool (roughly 300 SBD a post at 10x a day) they are effectively driving the community closer and closer to this reality. The whales that have a stake in this site might not care because they got in early enough that they can sell out and still make a giant profit but everyone else lost their chance. We still have a good 12 years until all of the STEEM is mined, but that may change... especially if the reward pool hits 0 in that time. The problem isn't just heajin either, there are so many examples where whales post content and upvote it to $100+ just to proliferate their share. I am not a witness and I definitely do not know everything about the inner workings of the steem blockchain but I know that if that reward pool hits 0 that problems will arise. So all you supporters of heajin, I am not saying this as an attack on any of you or him, and all the bernie supporters, I do not care what you think either. I could provide samples of source code for steemit and provide charts and data to back up all of this but most of the users on this site would understand none of it because the system isn't as simple as pieces of source code. Yes there is predictability but steem is the only blockchain with a working product and any user that is pushing over 1000 Steem a day is effectively working to push the system to chaos. Steemit is, to my knowledge, the only example of a blockchain that actually has the potential for working products and you all want to destroy it. So go ahead because my stake of 1700 SP can't do anything to any of you. I just hope that if you keep fighting like this that one day you buy into steem just to fight back and amidst the fight the reward pool hits 0, because as soon as it does you will lose everything you have gained.

A Letter Sent From Another Account