The concept of rewardpoolrape is anti-capitalist and anti-free market.

in #steem7 years ago

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Debunking the myth that rewards in the pool are scarce

Have you ever wondered how steem is going to pay everyone when there is hundreds of millions of people using it? Surely if rewards in the pool were limited steem wouldn't be able to scale right...
The good news is that rewards in the pool are potentially unlimited, they grow with the price of steem. As an example say the reward pool today is worth about USD 50k. When the price of steem is 10 times what it is today that same reward pool will be worth half a million USD.

Most of the arguing recently comes from this misconception that the reward pool is finite.

Not only are the actions of those who advocate against rewardpoolrape useless but I think they are actually detrimental to the community and growth of the platform because they are anti-capitalist.

Let's take the @haejin example to illustrate my point. @haejin has decided to put his capital into steem because he thinks that's where he will get the best return. In order to get those return he needs to stay powered up, thus he has contributed positively to increase the size of the reward pool. Those who argue that @haejin is upvoting too many of his own posts fail to understand that the very reason @haejin invested in the first place is because of the returns he is currently getting. In other words, if the rules of the games were different and more restrictive he would have invested a lot less money.

Another hot topic that has sprung up as a result of this rewardpoolrape misconception is the excessive use of voting bots.
We've seen the rise of social justice warriors lately trying to put restrction on the use of these bots. To me this is the most anti-captialist thing you can do. In the real world it would be similar to government putting quotas to prevent competing entreprise from growing.
Most bots operates in an anti-capitalist way anyway because they restrict how much capital they can be given. This is akin to a company refusing customers's money...something inconcevable in the real economy.

Instead of restrciting users they should let them bid each other like an auction type thing, this would be real free market.

What do you think? Should steem be a communist society with loads of restriction or should it be capitalist driven by a free market economy?

Also remember one thing guys, the reason your posts are worth anything at all is because...capitalism

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Here's the thing though: nothing can restrict anything on Steemit, except a code change. Everyone is free to vote as they wish, either up or down, and no one - NO ONE - can restrict them.

Some people do listen to arguments, and respond to flags, and they change their behavior, but it's up to them to do it.

It sounds like what you're really against is argument-based social pressure but that is a fact of a social network. People don't have to listen to it. @haejin and @berniesanders definitely don't!

I've said it before (and to you if you remember) but the problem with so-called "excessive" self voting is that it's against a primary aim of Steemit, to use the wisdom of the crowd to evaluate and reward posts. If you can just buy that for yourself it doesn't really work.

but the problem with so-called "excessive" self voting is that it's against a primary aim of Steemit,

Those who only vote for themselves will receive less support from others so to me self voting is a bad strategy if you are active in the community and want to connect with people. @haejin used to vote all comments in his posts for this very reason, he knows that voting for other is ultimately the strategy that will pay off in the long run.
What really hurts the platform is not letting users use their SP as they wish, it reduces demand for steem.

What really hurts the platform is not letting users use their SP as they wish, it reduces demand for steem.

No one is stopping @haejin from voting how they want. No one can stop anyone. People do however down vote @haejin, so really what you're getting at is a critique of flagging?

It's not clear if you're saying we shouldn't espouse what you consider to be anti-capitalist concepts in posts / comments or if we need to either voluntarily stop flagging or remove the feature from the system. Am I getting warmer?

self voting is that it's against a primary aim of Steemit, to use the wisdom of the crowd to evaluate and reward posts. If you can just buy that for yourself it doesn't really work.

Agreed with you completely. Self voting as the name itself implies related to psychologically speaking with the ego. Self vote crowd are egoistic beings. <3

I think this is a misrepresentation of the economics in play here. The rewards pool is not a fixed sum to be divided, but it is constrained by the value of the network and people's willingness to invest in it. That willingness to invest is largely determined by belief that it's sustainable and will continue to grow over the long term.

If people buy Steem exclusively so that they can use it to upvote themselves and direct inflationary rewards from the rewards pool to themselves, then Steem is nothing but a ponzi scheme. That is not a sustainable approach.

In order for Steem to be sustainable, stakeholders must vote to reinvest capital in real productivity by upvoting quality content that helps make this a community worth investing and participating in.

Tesla has been very successful in raising money, and they've invested that money in massive infrastructure expenditures like the gigafactory. Imagine if instead, Tesla had used most of the money they raised from new investment to pay dividends to all their previous shareholders. That's what many people are trying to do with Steem now.

Right now user retention is absolute shit and will continue to be that way until people find reasons to stay here over using other social networks. You know something is wrong when none of those other websites compensate the user, and it means that the network effect here and the content alone is not strong enough of a draw for new users to stay engaged. Also, the necessary "capital" required to interact on the site are essentially pulled after a month, ensuring that people come here, find the content lacking, and even if they attempt to stay are rewarded by not being able to vote or do anything after a month.

Tesla isn't a very good example, they receive big government deals that aren't at play here, but yes they attempt to innovate with some of the money. There are attempts to draw people into the steemit economy with all of the apps that are being created, but apps are plentiful and user attention is not, and if the baseline economic model of the steem coin itself is distasteful to the broader market (as you put it the perception of it being a ponzi scheme used to pay out the big holders) then it will not see greater adoption.

I'm leaving to lending platforms, my marketing is also not appreciated.

I brought a few people here,most think it sucks. I am leaving for equality and love: lending platforms

I've used the example of investors in a broom factory who are lured into investing with the promise they can take brooms from the production as a form of dividend.

Rewards for content creation are the product of Steemit, the mechanism that causes it to grow. Just as a company that has no brooms to sell will prove a bad investment, so will Steemit if rewards are similarly unavailable to deliver to content creators.

We see that Steemit loses ~90% of users YOY.

This is why.

If people buy Steem exclusively so that they can use it to upvote themselves and direct inflationary rewards from the rewards pool to themselves, then Steem is nothing but a ponzi scheme. That is not a sustainable approach.

Agreed with you completely. Self voting as the name itself implies related to psychologically speaking with the ego. Self vote crowd are egoistic beings. <3

One should expect that if something can be done, it will be done. People like Bernie and Grumpycat are trying to enforce "unwritten rules" which tend to be selectively enforced.

If voting bots are bad, change the code to prohibit them.
If self-upvoting is bad, change the code to prohibit it.
If "X" is bad, well then change the code.

I appreciate their desire to keep the platform clean and viable, I just believe they are going about it the wrong way.

capitalism is defined as private ownership of capital. Under capitalism the idea is this ownership can be directed in any way the owner pleases. Steem is this private capital, and the use of flags against those who "abuse" the system are just another use of that

the economic system is defined by who controls the means of production, not how they use it.

flags and disagreements shouldn’t be confused with each other. Unfortunately, I’ve seen that happen around here.

uhhhh why not?

I didn’t think I’d have to explain this but ok....
Threats, damage, theft absolutely warrant a flag.
A Raiders fan flagging a Broncos fan just because they don’t like the same team, that’s a disagreement and in my opinion, doesn’t warrant a flag.
that’s why I say they shouldn’t be confused with eachother.
(Hopefully I cleared that up)

flagging is used for disagreement over rewards, even in the first cases you gave.

Is that not disagreement?

Maybe it’s just me who has no idea what it feels like to click that little flag symbol thingy.
Hey but thanks for Upvoting me not, you rock!

I like your style @anarchyhasnogods - you pick up flawed logic quicker than a Socratic mind! :)

"What do you think? Should steem be a communist society with loads of restriction or should it be capitalist driven by a free market economy?"

communism is defined as worker control of the means of production, how the private owners of capital choose to use their capital does not make it more or less capitalist.

Since there is no code that is put in place for some of the issues you are concerned about, the free market is promoting such activity.

People are allowed to be SJWs in a free market environment, people can go on flagging campaigns in a free market environment, people can buy upvotes in a free market environment while those that sell them can impose any restrictions they want to in a free market environment.

If code is law, as long as the developers and witnesses are not restricting transactions between individuals, then we are practicing capitalism. No one is entitled to the rewards pool, thus people can play with their stake as they please. If you want change, you have to alter the code. That being said, should we change or keep going with this open system?

An interesting and refreshing look into the reward pool shenanigans. Let it be a free market and have the people decide!

Nice to see a voice of reason in between the battles of self promoting outrage bloggers. Keep up the good work, in following you now.

I've got mixed opinions on this. The reward pools HAS to be distributed, and I think people are more concerned with where it is going and if that person is withdrawing funds out of the network in a way that doesn't promote the blockchain.

While we all agree that it is your personal stake and you can do what you wish with it, its also the idea of "if all the free range cattle live on my land, I can slaughter as much as I want". Theres a point where you are doing a disservice to the community.

Thats where flagging comes in and plays a major role in controlling people who are doing something that's unproductive to the community.

take @haejin for example. Do you think his content is worth the amount that people upvote him with?

Perhaps to some, but not all. Regardless, he is making a KILLING in terms of steem, but thats the same reason why the finance market (in real life) makes the most amount of money. But the real question is does he add value to the platform at the rate he was earning?

That's the main debate.

There IS a reward pool and is finite!

If you look at https://steemd.com/ you can find the number total_reward_fund_steem. This is the so called reward pool. Everytime a block is generated (every 3 seconds) 1 (or 2 I'm not quite sure) Steem is added to the reward fund, if then someone upvotes a post or comment a percentage of this Steem is 'assigned' to the comment or post. If the reward fund is zero, a small percentage from all users is taken and given to the one who was upvoted.

If anyone here remembers the time when HF19 was deployed, you know that the rewads were extremely high, much higher than now. The reason for this was, that before HF19 with a 100% you were only able to consume 0.5% of your voting power, and after HF19 2%. Before, much voting power wasn't used and thus more and more Steem began to accumulate in the reward fund, after HF19 much more VP was used and the supply of accumulated Steem was distributed fast.

So what I want to say is, that if someone has thousands of Steem in pending rewards, it is taken away from all the other users!

Note: upvoted only for visibility.

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