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RE: Open Letter to all Steemians - Hardfork 21: Culture Change

in #steem5 years ago

"Do you think that everyday posting (shit) brings any value to STEEM?"

Social media has proved to be the best business model in the world today. The FAANGs have proved this by exceeding the market cap of other businesses, and very quickly.

People interact and create society, and an economy is part of society. It is not the most important aspect of society, and extracting rewards isn't why most people use social media.

Extracting rewards by self voting, buying votes, and so forth, reduces the monetary value of the Steem token, because it extracts that social value before it can inure to the underlying investment vehicle.

Profiteering produces ROI, and before Steem it has long been the business model of outfits like Bain Capital, KK&R, and other firms that buy a controlling stake in a company and sell the assets of the company, profiting thereby. This destroys the companies they buy, but they make money, so it's all good from their perspective.

That's what is happening on Steem, but the forges and equipment of Steem are authors, and they can't be sold. HF21 is going to increase the incentive to profiteer on Steem, and further decrease the value of Steem. If we want capital gains, we need to reduce the incentive to extract rewards by self voting, selling votes, and so forth, allowing rewards to encourage creators and produce capital gains.

Mitt Romney would be proud.

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