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#promo-steem

How viable is Steem as a currency as the Steem network must constantly create tokens to reward bloggers and enable votes (causing lots of inflation)?

They Call Me Dan@theycallmedan (80)2410d

Inflation, bad?

I have heard the idea of reducing inflation down to 1-2% on Steem - by eliminating the reward pool for Proof of Brain and leaving just inflation for witnesses & Steem Power hodlers. And moving token rewards over to Smart Media Tokens, strictly.

I believe the inflation in place is good + sustainable, with 8%ish and lowering every block.

I always figured Steem as The Upvote of The Internet.

Of course, every good faucet needs a sink to go along with it. A few ideas I had for sinks would be an Instant Power Down + 5% burn fee & Burn to Promote (buy Steem, burn it to get more exposure for your post) which popular front end @SteemPeak have already implemented.

Creating thoughtful sinks will allow you to get the utility of Steem with upvotes while balancing with burns.

I look at Steem token being the visa of the Steem blockchain, excepted everywhere (under each "house rules" if you will) retaining its amazing utility.

Steem is a Delegated Proof of Stake (DPOS) blockchain, which is a stake based democratic chain meaning we need to Steem in as many hands as possible for decentralized voting.

To do anything on Steem you need resource credits, which is another reason we need Steem in as many hands as possible. Giving Steem “samples” out for free is a great way for people to see how deliciously useful it is!

Try fried rice?

No ty.

Try fried rice!

Erm, no ty.

TRY FRIED RICE!!!

Ok, Ok... Mmmm! That is delicious!

Follow me, 6lb bags are this way.

Issues that arises with locking Steem up so that holders and witnesses are the only ones getting inflation.

First, the rich get richer.

Secondly, witnesses are a tiny group. The DPOS can become centralized to early adopters & witnesses only if that setup.

Steem can one day be in a billion hands, where hordes of minnows can make or break a witness being in the top 20.

Power corrupts all, and we need checks & balances. By giving the bulk of inflation away to new users, I believe that is the key to winning. You get people to use your currency by giving it away. Fried rice anyone?

BUIDLing into the future, I believe we should buidl with Steem powered upvotes in mind.

Why Price Bad?

People think inflation is the reason the price is down. No, one the reasons the prices are down is that Steem has a working product and it's an altcoin in a bear market. I know you're saying we are dropping in rankings, but when we are getting passed by the likes of "Japan Content Token" listed on sketchexchange dot com… much wow!

Steem is a victim of being a good blockchain. It's not listed on sketchy exchanges that have market makers pumping fake volume. ICOs do that to appease ICO investors, Steem didn’t have an ICO; therefore, there are no market makers faking volume.

Key to Top 50 Shitcoin Market Cap Success:

ICO token is key to success!

Get big social media following, Check!

Have ico and raise millions. Check!

Pay a big exchange listing fee with a market maker to pump coin price and volume. Check!

DON’T HAVE A WORKING PRODUCT! This is key, check!

Dump on hodlers and vanish into the darkness, check!

Look, I'm saying Steem isn't the only great project getting slaughtered in value. Look at coins like Civic and NLC, low alts with working products, slaughtered. What's still standing? Fcking hype coins, stuff with no real products. Because they are being manipulated in price.

In the NFL, they have a term called "getting frazzled." It means, when you get down by a few scores, you start deviating from your original game plan.

For instance, a team with a great running attack but an average passing offense, might abandon the run and start throwing out the deep balls to try and catch up. In reality, what is best is to buckle down and stick to the game plan.

With mass adoption, Steem will tear through inflation like a knife to hot butter. If anything the inflation will be needed to keep supply up & help with sell liquidity, remember, people actually need Steem to use the platform, chocking supply to nill isn't a great sales strategy. Tons of Steem will be locked up by apps/dapps as it is, cutting inflation will severely cut supply, in a bad way, in my opinion.

Combining a great Faucet like Steem has for onboarding (proven very effective in making Steem go viral) + creative value adding sinks. the burning of Steem takes Steem from hodlers hands and destroys it. That means these people where already onboarded. New Steem inflation can be used to onboard new people.

I am a fan of the current PoB setup with the new improved Economic Improvement Proposal (EIP.)

This answer is a promotional effort to raise awareness about Steem on Quora. Earn upvotes for your Steem Quora answers! Details here: https://steemit.com/promo-steem/@theycallmedan/quora-onboarding-initiative-updated

Help promote the Steem blockchain on Quora by joining the Steem Cryptocurrency Quora Space (CONGRATS ON 1k SUBSCRIBERS): https://www.quora.com/q/otycmrjbbhahuqae?sort=top

Quora link to this answer: https://www.quora.com/How-viable-is-Steem-as-a-currency-as-the-Steem-network-must-constantly-create-tokens-to-reward-bloggers-and-enable-votes-causing-lots-of-inflation

Comments · 29

  • @thethreehugs(62)· 2409d

    Resteemed by @thethreehugs

  • @arcange(79)· 2409d

    Congratulations @theycallmedan! Your post was mentioned in the Steem Hit Parade in the following category:

    • Comments - Ranked 8 with 66 comments
  • @freddio(60)· 2409d

    @theycallmedan what do you think about remove SBD from rewarding and make SBD like a copy of DAI from ETH?

    its more scaleable and better to use. I would they this is a Killer app for Steem.

  • @doifeellucky(65)· 2409d

    Very nice writeup @theycallmedan!

    Yep, I'm all for giving out the "fried rice" to the masses!

    I also loved this

    | Key to Top 50 Shitcoin Market Cap Success: | ICO token is key to success! | Get big social media following, Check! | Have ico and raise millions. Check! | Pay a big exchange listing fee with a market maker to pump coin price and volume. Check! | DON’T HAVE A WORKING PRODUCT! This is key, check! | Dump on hodlers and vanish into the darkness, check!

    Brahaha!

    Cheers! Lucky

  • @stefano.massari(75)· 2410d

    I also noticed that there are too many tokens around the STEEM blockchain ... I don't know if this is good or bad

  • @thelogicaldude(74)· 2410d

    I don’t really worry about the price or place in the market. Oh course I want it to go up, but this is still one of the best blockchains out there. Conversations like these in the community is what helps make it strong. Just keep using the platform and earning as much as I can so that when the price finally goes up, it will be worth cashing some out. I do agree in some kind of instant power down feature. I would say 10% would be fair for an instant power down. Possibly a 5% for a 4 week power down and then free for the 13 week, make it a tier like program. Just my opinion man. Keep up the good work man.

  • @enrique89(77)· 2410d

    Ending steem inflation is like Apple stop selling its products. Would more people check if it's good or bad?

    Large companies take care of value, through new proposals that make their customers feel satisfied.

    The price falls because there are not many people who think that steem has much more value or people who need to leave steem for several reasons.

    If you burn or stop giving away, it does not change the perception of a buyer or sell.

    It's my thought, maybe I'm wrong

  • @brianphobos(72)· 2410d

    There is no actual value in not being able to do almost immediate power downs. 3 or 7 days for security perhaps. What is 3 month power downs protecting the price? Absolutely not. We got dumped on harder than most random clone coins from 2013.

    Posted using Partiko Android

  • @forykw(71)· 2410d

    Sometimes I feel topics of discussion like this one could really educate more users as well bring news ones skeptic to the public rumours. It could be something easier to do natively on STEEM. I mean, the discussion.

    I say so because I wanna find time to express my side... but because I know I won’t have time to make my stance clear, I choose not to go with it. But that also pains me to hold as sometimes I loose the grasp and release bursts of opinions that are not always understood.

    For me it’s hard to judge what would be best for STEEM, but if this aims to be a freedom speech platform, then we need to find what makes that the holy grail against other platform. Then exploit that feature and see if that works for the common good of the blockchain.

    The hard part will be selecting and keeping lock on the grails... as they also change with time.

  • @nihar1969(53)· 2410d

    Done the Flowing:

    1. CONGRATS ON 1k SUBSCRIBERS

    2. Answer the Quora question .

  • @beerlover(65)· 2410d

    Sorry, you don't have enough staked BEER in your account. You need 6 BEER in your virtual fridge to give some of your BEER to others. To view or trade BEER go to steem-engine.com

  • @shaidon(71)· 2410d

    Thank you for posting this. It’s very informative and ai think people can unfortunately get influenced by charts and so forth and quit because of the $US price. Wouldn’t cheaper prices be the best time to buy, traditionally?

    I still get paid for producing quality content, regardless of what other social media is doing. !BEER.

  • @badseedalchemist(65)· 2410d

    This is really interesting and has greatly helped me to understand some of the operating attributes of the STEEM blockchain. Plus, your no soup for you approach was very entertaining. Thank you. I enjoyed this and will try to remember to check out the quora thing. :D

  • @felander(73)· 2410d
    • Keeping inflation as it is seems to be the option here for me...
    • lowering powerdown times, not a good idea
    • Getting the SBD at 1 and pegging on both ends... the best thing ever (look at stablecoin success)
  • @cryptosearch(49)· 2410d

    If steem have faucet earning site it will useful for new steem users because this give some free steem and new steem people powerup their steem and steem base will grow.

  • @lordbutterfly(80)· 2410d

    Huh? All tokens have inflation. Bitcoin has inflation. Its around what... 3% i think.
    Its just that the inflation is distributed differently.
    In bitcoin only miners get the inflation, on Steem its distributed to everyone that contributes.

    Once bitcoin stops being mined fees will go through the roof. Low Inflation is good and anyone that thinks otherwise knows nothing. Those that use the fact fiat is inflationary as a bad thing are idiots. Fiat has other drawbacks but inflation isnt one.
    Its actually one of the reasons we live in the wealthiest time in human history.

  • @binkyprod(70)· 2410d

    When I started posting on Steem, both Steem and SBD were worth $1.00 USD. It was like that for quite a while, then it hit a top and then hit bottom again. Because of the bull and bear markets.

    If the people working on the blockchain made it so only the whales got greater value, how would that encourage content creators? Steemit used to be a viable income source for me. And that was when I was still a Red Fish. I'm a Minnow, a delegator, halfway to Dolphin, but I don't see how when I do become a Dolphin how that will change. My upvote today is worth almost as little as it was when I first joined in June 2017. I don't Power Down, but I'm holding Steem that I don't intend on Powering Up so that I can cash it out, because it's my income.

    I used to Power Up ALL my Steem. I used to only cash out SBD and sometimes buy Steem or other tokens and crypto currencies with SBD. What happened to those? WHY are we not getting SBD anymore?

  • @sumit1998(67)· 2410d

    In my opinion inflation is not an problem looks coins like xrp which has open supply of 100 billion but only 42 is open for market at this time and if they want they can open all 100 billion but is that fears people answer is no it is at 3rd in market. And also look at stellar recently it has cut 50billion from its supply but it doesn’t make any growth. So inflation is not problem. What we need is more effective promoting to other platforms. Steem needs an great PR team and an special budget for that

  • @clixmoney(78)· 2410d

    Limiting rewards could save the situation. Let's say a post should't earn more than $30. Let's suppose someone always earning more than that from almost every post he/she create while others earning cent's or a few dollars no matter the efford they do. Limiting the rewards for posts willmake everybody equal. If somebody want to earn more let them create more. That will reduce the inflation, not removing rewards from creators at all all giving them tokens.

  • @fsm-liquid(48)· 2410d

    I really can't understand the hatred of inflation on crypto community. When a currency is deflationary it becomes a shitty currency, people would rather stock them up rather than spending them. The currency devolves into Store of Value™.

    My contempt to fiat currencies is not because they are inflationary but because newly printed currency starts at the hand of people that earned none of them. Steem does have black stain historically (ninjamine and bid bot) but ninjamine will not happen again and bid bot shitshow has been solved by EIP. Also, fiat currency has the problem of incapability of destroying supply (no incentive on top of being illegal) to retain value, that's not the case for a lot of blockchains including Steem. I am not opposed to inflation, I just want to have a say in it. Steem is one of very few projects that align with my vision. A project that doesn't simply want to increase price of the token for the sake of it. Removing STEEM content reward is deal breaker for me for the same reasons you mentioned on your post. I will simply leave if that ever happens. Such shortsighted proposal.

  • @smooth(74)· 2410d

    The idea that you have to choose between (high) inflation and distributing Steem to many hands (say a billion, to use your number) is false.

    There are many ways to distribute coins. For example, a front end or community can require that advertisements be paid for in Steem and can then distribute those coins to its users as rewards. This has numerous benefits as an economic model, including the fact that it closes the loop in terms of value add and value paid out. Any front end or community which allows its users to 'milk' by earning rewards without bringing in eyeballs and ad revenue will run out of coins and go out of business. On the other hand, a community or front end that is successful with this model will bring in large numbers of eyeballs, high ad revenue, and have many users.

    This is unlike Steem, where people, including the very largest stakeholders can milk for years while we are bringing in few (net of attrition) users or eyeballs, and there is no natural limit to it. That's the real rich getting richer problem (at least if you want to measure 'rich' in terms of stake rather than actual value).

    Proof of Brain maybe could possibly work, in some theoretical sense, but it hasn't been demonstrated to work so far. Yet Steem is still, for years, spending an enormous part of its inflation budget on something that doesn't work. This is contrary to every notion of good business strategy. If a startup has a growth plan that involves spending $X on such-and-such promotions, marketing, etc. and after a reasonable time (months to years, in this case, depending on how you measure) it turns out that spend isn't producing anywhere near the planned or needed growth, then any sensible management will pull back on the spend, iterate on the strategy, and try something else. To just continue to pour money down the drain at the predetermined rate on a failed plan is suicidal.

    I think it would be perfectly okay to drastically cut spend on PoB and then, if a successful model could be demonstrated using SMTs, with some growing communities, or if some other credible proposal were made to further modify it to make it really work (say EIP 2.0), then it could be dialed back up. It makes perfect sense to spend money on something that has been shown to work, and indeed is stupid not to.

    I like EIP, I was a big supporter and advocate for it. And it has improved things a bit, but not really all that much. There is still a tremendous amount of milking going on every single day generally by large or very large stakeholders (as they have the stake to direct rewards to themselves or within a small group; users with little stake do not), and the very largest stakeholders are still selling their votes to the vote sellers and bots with the highest ROI (and in the process getting richer). There is still a only a very small amount of downvoting, as apathy and fear of retaliation are enough to discourage most from using even EIP's free downvotes, in practice. And most importantly of all, it still isn't working as a growth engine, and there is no data that I've seen suggesting it is on a trajectory to do so, ever.

    Unfortunately, the inflation you claim is distributing stake is actually doing more to destroy the value of it as well as in some non-trivial ways, actively concentrating it.

  • @markkujantunen(77)· 2410d

    I'm not in favor of lowering the inflation. Market conditions such as the current one are temporary. There is no reason to significantly change the protocol because of temporary conditions.

    A burn fee for faster powerdown sounds reasonable.

  • @msena(60)· 2410d

    Lot of people lost their money investing on scam project where they could invest on steem. Steem is the only one real decentralized social platform. Other social platform highlight them as decentralized but none of them are totally decentralized.

    Posted using Partiko Android

  • @d0zer(61)· 2410d

    There is just not enough interest. If you look at the average daily users of steem dapps, at best a few hundred. You can’t attract investors/businesses with such numbers.

    I hope SMTs will add value but I’m skeptical. We already have enough worthless tokens.

  • @chrisrice(68)· 2410d

    I think an Instant Powerdown should cost 20%, not 5%.

    And I'm saying that from someone who would actually use it.

    Instant versus 13 weeks can easily double the gains that a person would achieve at the peak of the bull run.

    NOTE: Instant Power Downs should only be considered after the savings feature has been improved to allow longer holding times of up to 13 weeks.

  • @tarazkp(86)· 2410d

    I feel that a lot of the talk around lowering inflation (beyond the set rate now) is a knee-jerk reaction to the bear market trying to engineer price increases, even if it is not in the best interest of the long-term view.

    While tweaks are needed here and there, Steem has a strong running and air game and the applications are shaping up to be some pretty hardcore RBs. What is needed is a line that holds under pressure.

  • @denmarkguy(79)· 2410d

    I'd venture that if we see more and more use cases that actually tie up Steem tokens through things like membership fees to games, or things like genealogy or other "utility" front ends, the supply of "loose" Steem will soon enough dry up and send the price trend upwards faster than inflation can catch it.

    And then, of course, we're also in the ongoing cycle of financial markets... I think we're at the very edge of value investors taking over the driver's seat from "gamblers" and speculators.

    We may not have when Moon? anytime soon, but I wouldn't mind seeing a long period of gradual increases...

  • @por500bolos(68)· 2410d

    & once again...

    We all need a collective slap.

  • @shinersfamily(61)· 2410d

    Thank you for the awareness

    Posted using Partiko Android