Steem pyramid scheme revealed

[snowflake43]

Part of the new issued coins are allocated to SP holders. This means that the less Steem is powered up the more coins are being allocated to existing SP holders. So the new changes ( more liquid steem) basically creates a new incentive to stay powered up because there would be less steem powered up.  Please let me know if I am missing something but that's how I understand it.

Yes this is correct. When the percentage of SP is less than 90%, then there is an apprecation of share aggregating to the SP holders. This increases as the SP share decreases. I had covered this math in one of my blogs or comment posts on Steem. It is linked upthread some where in this thread.

The chart is here and the detailed math discussion is in the comments:

https://steemit.com/steem/@anonymint/who-pays-for-the-blogging-and-curation-rewards-part-2

Ok thanks for the answer. So if I am the only one powered up I will receive all the steem that was meant to be distributed to all SP holders correct?  Just want to make sure

[1715089978]

1715089978

[iamnotback]

I thought I fired you?

...

People who build juggernauts spend time trolling people on steemit! Totally makes sense! LOL!

You'll be the clueless poster boy (throwing stones at shadows) for those who thought they fired the completion of the trilogy of Mark Zuckerberg, Satoshi, and AnonyMint. Seems @theymos, @gmaxwell and some others shared your delusion.

Stay tuned...

[iamnotback]

Part of the new issued coins are allocated to SP holders. This means that the less Steem is powered up the more coins are being allocated to existing SP holders. So the new changes ( more liquid steem) basically creates a new incentive to stay powered up because there would be less steem powered up.  Please let me know if I am missing something but that's how I understand it.

Yes this is correct. When the percentage of SP is less than 90%, then there is an apprecation of share aggregating to the SP holders. This increases as the SP share decreases. I had covered this math in one of my blogs or comment posts on Steem. It is linked upthread some where in this thread.

The chart is here and the detailed math discussion is in the comments:

https://steemit.com/steem/@anonymint/who-pays-for-the-blogging-and-curation-rewards-part-2

Ok thanks for the answer. So if I am the only one powered up I will receive all the steem that was meant to be distributed to all SP holders correct?  Just want to make sure

The math is a bit more complex. Suffice to say that the lower the ratio of SP to non-SP, then the more (than their "proportional" relative to total inflation) share of the inflation that the SP holders get. And all SP holders get a proportional share relative to other SP holders.

In other words, as that ratio declines from ~90%, the inflation is putting more of the market cap in your pocket if you are a SP holder. The lower the ratio, the faster your share of the market cap grows. Above ~90% ratio, as an SP holder you are being debased and losing share of the market cap.


Edit: this means if the whales don't power down, their share of the money supply will be growing under this new change to lower the power down to 3 months duration! So it means the whale concentration problem can get worse. It is going to be very interesting to see how they try to extract the project from the initial effects of the sneaky stealthmine ("premine").

[snowflake43]

Part of the new issued coins are allocated to SP holders. This means that the less Steem is powered up the more coins are being allocated to existing SP holders. So the new changes ( more liquid steem) basically creates a new incentive to stay powered up because there would be less steem powered up.  Please let me know if I am missing something but that's how I understand it.

Yes this is correct. When the percentage of SP is less than 90%, then there is an apprecation of share aggregating to the SP holders. This increases as the SP share decreases. I had covered this math in one of my blogs or comment posts on Steem. It is linked upthread some where in this thread.

The chart is here and the detailed math discussion is in the comments:

https://steemit.com/steem/@anonymint/who-pays-for-the-blogging-and-curation-rewards-part-2

Ok thanks for the answer. So if I am the only one powered up I will receive all the steem that was meant to be distributed to all SP holders correct?  Just want to make sure

The math is a bit more complex. Suffice to say that the lower the ratio of SP to non-SP, then the more (than their "proportional" relative to total inflation) share of the inflation that the SP holders get. And all SP holders get a proportional share relative to other SP holders.

In other words, as that ratio declines from ~90%, the inflation is putting more of the market cap in your pocket if you are a SP holder. The lower the ratio, the faster your share of the market cap grows. Above ~90% ratio, as an SP holder you are being debased and losing share of the market cap.


Edit: this means if the whales don't power down, their share of the money supply will be growing until this new change to lower the power down to 3 months duration! So it means the whale concentration problem can get worse. It is going to be very interesting to see how they try to extract the project from the initial effects of the sneaky stealthmine ("premine").

Yeah Im curious to see especially what the steemit account will do.

[nzminer]

I still dont understand how it even works?

I got about $1000 from one of my blog posts, but others hardly got anything.

Where does the money(steem) come from?

If some whales upvote me, does it deduct that amount of steem from their accounts to credit me?

[brekyrself]

I still dont understand how it even works?

I got about $1000 from one of my blog posts, but others hardly got anything.

Where does the money(steem) come from?

If some whales upvote me, does it deduct that amount of steem from their accounts to credit me?

https://steem.io/SteemWhitePaper.pdf

[chryspano]

I still dont understand how it even works?

I got about $1000 from one of my blog posts, but others hardly got anything.

Where does the money(steem) come from?

If some whales upvote me, does it deduct that amount of steem from their accounts to credit me?

Where does the bitcoin mining rewards come from?

Instead of having miners with huge or small hash rates competing for the mining rewards, it's now bloggers with huge or small upvotes that compete for the mining/blogging rewards.

The more steempower someone has, the more his/her vote is worth and by upvoting the blogs/posts he likes he is rewarding the authors a portion of the daily "mining rewards".

[missbit]

The more steempower someone has, the more his/her vote is worth and by upvoting the blogs/posts he likes he is rewarding the authors a portion of the daily "mining rewards"


It also translates to "The richer you are, the more his/her vote is worth and by upvoting wives/gf/buddy/friends/relatives/new-friends-they-got-to-know-on-steemit/authors-who-usually-got-upvoted-a-lot-even though-their-content-is-shit a portion of the daily "mining rewards" which come from the pockets of investors e.g. Laonie who invested with 400 BTC"

What a "great" idea to get ultra rich within 6 months... I am sure steemit bloggers and the founders can sleep well at night :p

[kbroadfoot]

Fuck steemit and his founders

[chryspano]

It also translates to "The richer you are, the more his/her vote is worth and by upvoting wives/gf/buddy/friends/relatives/new-friends-they-got-to-know-on-steemit/authors-who-usually-got-upvoted-a-lot

Yes, you can upvote anyone you want, do you have a problem with that? should they ask for your permission on whom they vote? and on what basis?
 

even though-their-content-is-shit

Who are you to judge what content is "shit" and what is not?
There is some great content and there is some bad content, everyone can upvote and follow what they like, like anyone with lots of hash power is free to choose the coin he supports.

a portion of the daily "mining rewards" which come from the pockets of investors e.g. Laonie who invested with 400 BTC"

Everyone who holds steem is "paying" the inflation, some invested money while others invested time and work. The same applies to bitcoin too.

 

What a "great" idea to get ultra rich within 6 months...

Afaik you cant fork steem, you will have to find something else for your shitcoin.

I am sure steemit bloggers and the founders can sleep well at night :p

I'm sure too, but can you say the same for yourself?

[nzminer]

The more steempower someone has, the more his/her vote is worth and by upvoting the blogs/posts he likes he is rewarding the authors a portion of the daily "mining rewards"


It also translates to "The richer you are, the more his/her vote is worth and by upvoting wives/gf/buddy/friends/relatives/new-friends-they-got-to-know-on-steemit/authors-who-usually-got-upvoted-a-lot-even though-their-content-is-shit a portion of the daily "mining rewards" which come from the pockets of investors e.g. Laonie who invested with 400 BTC"

What a "great" idea to get ultra rich within 6 months... I am sure steemit bloggers and the founders can sleep well at night :p

OK interesting, so essentially its a way of mining?

So if you hold more steem power, that also gives the whales more steem at the same time they upvote?

[flipme]

Its so cheap. Basically its just a community board of average quality.
You could build that on Joomla, or WP for a thousand users easily.

The I/O for the website is stored in a conventional database anyway, with some bo-peep middleware to steemd.
Shouldn't be too much of a hassle to migrate any CMS to such a model, some extension to run your own community coin.

But cudos for the multi layered Ponzi, I've seen more money been thrown at worse shit at the beginning of the internet hype.
And I still see the chance that some major feels the urge to pick it up.

[iamnotback]

A day or two after Trump said on 60 minutes that he thinks social media is one of the big reasons he got elected, Twitter cracks down:

http://www.usatoday.com/story/tech/news/2016/11/15/twitter-suspends-alt-right-accounts/93943194/

We do need decentralized databases for social media, that no one can control.

And I still see the chance that some major feels the urge to pick it up.

Fuck the majors. Let's replace them. Damn it. Don't kiss their ass.

[flipme]

As long as it isn't main stream it isn't social media.
Everything else are communities, like this one.
And I wouldn't mind making a couple of grands for holding a bag of Steem.

Something I would imagine is a kind of a back-machine for existing communities.
Lets say boards like GLP or Reddit and the like were constantly crawled and just fed onto Steem.
Such an accumulation function could even be part of the client, winning a reward for finding a contribution which isn't on the blockchain yet.
Users could participate on either side, with naturally more content on the blockchain side, because it would have all other content PLUS the contribution of autonomous clients. There wouldn't be much Steem Inc or GLP or Facebook could do about it. Somebody started a thread on GLP about a GLP-Py tool he makes, to do just that. It was deleted after a couple of posts and we got banned. Forget about all voting and value crap, its just a trollbox feature, i.m.o.

[iamnotback]

And I wouldn't mind making a couple of grands for holding a bag of Steem.

Oic, well I have bigger fish to fry. No time for thinking about how to make edible some snails my dog rooted out of the flower bed.

[iamnotback]

https://steemit.com/travel/@sharingeverybite/current-status-trapped-in-iceland-with-shenanigator-after-being-screwed-by-wow-air-help

(don't worry, though, all the money earned from this post will go to funding their trip to the Netherlands)(and they deserve a lot of upvote money because, you know what, although legal, is still not cheap, and you deserve to pay for them to consume those magic substances)

Liberals can't fight their way out of a wet, paper bag. I commented:

In 2006, I rode the train from California to Texas and had my own little room for sleeping. Perhaps for the two of you, it would be roughly the same costs as the bus. Train should be reasonably fast and less exhausting.

Contact the US Embassy. They can loan you $300 or so and stamp your passport so that you must repay it else your passport becomes invalid. I did this once in the mid-1990s to get home from the Philippines when I was destitute.

Hey why are you complaining about that hotel room. It looks better than where I been living for decades. And even in 2006 when I had $100,000s in savings, I stayed at the Brendal Hotel which was/is worse than the hotel you have in this blog post.

Hey eat a little pizza, it won't kill you. Or go to the grocery and buy some raw vegetables to eat raw.

Btw, that ill-fated trip to the USA in 2006 is what probably caused the damn health problem I have now. My sister was also murdered while I was in Texas getting infected with a nasty virus. 2006 was a bad year for me. That is also when I found out about silver (Jason Hommel of silverstockreport.com), which was a significant factor of why I lost my wealth. But I did pick a few important bits of knowledge from Hommel, such as we can't give away for free that which isn't free.

[missbit]

Yes, you can upvote anyone you want, do you have a problem with that? should they ask for your permission on whom they vote? and on what basis?

No, not at all. I have no problem with that. They can upvote whoever they would like to throw money by reaching into investers' pocket.

Who are you to judge what content is "shit" and what is not?
There is some great content and there is some bad content, everyone can upvote and follow what they like, like anyone with lots of hash power is free to choose the coin he supports.

Yes, just like a blogger and reader is free to choose where to blog and where to read. And that place is NOT steemit. So, userbase will continue to decline, like the price.

Everyone who holds steem is "paying" the inflation, some invested money while others invested time and work. The same applies to bitcoin too.

Oh really? Inflation of 400 BTC to 20 BTC and takes 2 years to power down. "Nice" for investors to not only invest and even have to "work", "curate" and "write".

Afaik you cant fork steem, you will have to find something else for your shitcoin.

Thanks. But my shit coin value does not pump 1000% within 2 months and drop all the way 1000%.

I'm sure too, but can you say the same for yourself?

On the contrary, I can. Because i am a trader. Just looking from the outside looking at silly investors and nonsensical steemit bloggers.

[iamnotback]

@nologicleftinthehouse babbled:

If you cannot leave, look deep within yourself and ask yourself why.

The “dog chasing his tail” inkblot is yours. It is as if you haven’t understood anything I have written, except to incorrectly perceive everything as an attack on you.

How upstanding, consistent, and non-hypocrite of you to argue for social network harmony and now insinuating that I must leave Steem(it) before you do.

Seems to have entirely flown over your head that my beef was never with you nor your activity on Steem(it), but rather with a technical design and sneaky premine that turned Steem(it) into a collectivized gridlock that monetarily binds my preferences for my Steem Power to @berniesanders’ outsized power to award the dilution taken from me (indirectly by taking it from speculators who don’t power up) and awarding it to you. The point was never that you shouldn’t be free to express yourself and even be rewarded/appreciated by your social circle, but rather that the design and ownership structure of Steem(it) combined creates a situation where @berniesanders is acting on my (and all other dolphin and minnow Steemians’) behalf.

As I said, in my superior designed system, you won’t encounter that conflict.

Yet somehow I think the point will continue to fly over your head.

I wasn’t assailing your character, but you took the discussion there because obviously you never understood that I have no problem with your creativity.

[chryspano]

... i am a trader. ...

That explains a lot. 

[iamnotback]

banano that is a very astute insight. I was starting to lean that way in my internal thoughts also (just been too busy on technical work to really think it out and make a post).

If they do indeed lower the inflation rate to that of Bitcoin, then the disadvantage for not powering up, will be irrelevant relative to speculation alternatives in other major crypto-currencies.

And yes DPoS has some advantages over PoW that resolve many of the issues that Bitcoin is stuck in and can't currently resolve (technically and politically).

I have decided to stop powering down. I will wait for accumulation and then a pump. I think you are correct that we will see Steem rise again.

If I had more capital to risk, I would probably be in contact with @dan and @ned determining if they are really going to push through with the changes and then acquiring more STEEM (and powering it up) if so. I don't have any speculation capital right now (other than my time and work opportunity cost with which I am speculating and investing in my project for the most part, although in prior months I was putting some effort into investing into Steem which is why I have 5000 STEEM POWER).

Note this presumes the whales aren't going to just cashout every time there is some liquidity. I would suggest confirming with the significant whales before making any large speculation.

(and this is also good for the project I am working on, as it gives more legitimacy to the concept)