Withstanding the Double Whammy of Rewards Removal and Value Reduction of a serious nature for at least the next two to five months made yesterday a tough day every which way round.
The Whale Experiment eventually seemed to work out but not without a fair bit of damage along the way.
Now we have HF 17/18 and a seven day wait plus the rewards getting decimated. If the plans are exercised as I suspect, this will take about three to four months minimum to become operational in full rewards capacity with the rewards pool full. In the meantime, expect 80% lower than normal rewards, then 75%, etc. It will take a long time.
We have all lost a lot of rewards on active posts and momentum in various different ways.
There is of course a solution!
A better solution than the proposed system, I hope you agree.
On a daily basis, the interaction with the blockchain produces about $10,000 of which about 70% is distributable as rewards. The problem we have is that we have no rewards pool because we are moving from a 1 day to a 7 day pay-out period and that has to be based upon a 30-day moving average of something which is supposed to be comprehensible - did you get it? No ... nor did I! It does apparently make the computing of rewards a lot easier for the machines which do the calculating .. Bless!
When you think about it , we don't actually need more money in the rewards pool, we need about the same! Rewards are still paid out daily, just 7 days later than now.
What is and where is the existing rewards pool? In addition, how much was thrown in from the posts which were still active at the time of the Hard Fork being triggered? Are there records of these? Of course there are.
So, what will building a 30-day reward pool do?
It will create a non-income producing asset.
Due to the powering down stipulations, 13 weeks gives the rewards pool no time to react to anything unforeseen. Hence the entire rewards pool would need to be held in steem, not steem power, depending upon scale. This is, I suspect, a very large driving force behind this development as Steemit Inc. certainly does not want a non-income producing asset. It also probably would like to free up some working capital.
The new system will try to even things out through a 30-day voting density average hoojamaflip.
).
Thereafter, as the rewards pool fills up its 30 day requirement ($210,000), the rewards will start out meagre and slowly get bigger as each week goes by.
To put this in perspective, $7,000 at, say 25% ($1,750) will take 112 days. I cannot see anyone accepting a 25% paycut to pay for a non-income producing asset that people generally don't want.
What about a 12.5% pay cut - more tolerable but can you wait 224 days? That will be your Christmas present.
Obviously the community of steemit is paying for it in more ways than several.
How about we get it done and dusted inside a week?
Sure there will be stuff to sort out afterwards. But ...
When you think about it, $210,000 HAS to be removed from the rewards pool, albeit via a function of a 7 day delay. This 7 day delay is being charged at a 30 day price!
Who is paying for the right to have an non-income producing asset? We are.
Who owns the rewards pool? We do not.
There is another way ... which I believe has more merit.
Week 1 - $49,000 (plus the post value from day 0 and the existing reward pool from pre-hard fork).
In the steemit account sits 1.5+ million steem. Powering down to the extent that it has does have its benefits! We don't need it all - just a lot of it.
Over the first seven days (no pay-outs) the same generation of steem happens on the blockchain - so assuming the numbers, $70,000 is generated. The rewards pool gets 70% of that - $49,000 income -
After 7 days we have $49,000 in the pool (plus the value of posts which were live at the time of the switch). Also add in the rewards pool which was allocated but not distributed at the time of the Hard Fork.
We need a rewards pool, according to our witnesses of $210,000, being 30 days rewards
We have a shortfall of $161,000.
Where are we going to get that from?
Easy!!
The steemit account contains 1.5 million+ steem.
This is the ideal scenario to make use of it for the benefit of the platform.
If we cannot use that, I am sure that there will be a few fine whales willing to make up $161,000 worth of steem!! I could tell you who has what but that would just cause embarrassment - I am sure that the fine whales will step into the breach as leaders on this community-oriented platform. Poloniex has so much steem which has been gathering dust for months!
Now we need the loan because we need things to be paid out AND we need to leverage our position. If we pay out at 90%, retaining 10% for the rewards pool and remembering to pay interest to our lenders ...
There are many ways to skin a cat, they say!
Take the $49,000 and the add the daily $7,000 and then add dollar for dollar from the steemit account. Within a week you have over $100k if we accept a 90% pay-out, including all pay-outs and interest payments, Offering 12 to 15% on a secured loan - best deal in the world apart from CAR!
My thinking then says, maintain the payments at that level (90%) AND build the pool even further - every week we can get another $10k into the fund, dollar for dollar. This can be put to use in SP. Over time, the fund will get to $210,000 - the figure sought by the witnesses but it will have been created and paid for and, hence owned by the community of steemians!
Steemians WILL OWN THEIR OWN REWARD POOL
I could try to do this myself but ... share the lava eh!!
This is how it would work:
Green for no pay-out and Red for Borrowing. We are now on Day 2
First day of borrowing, $ for $
Into it, three days of borrowing
We are reaching the peak now. Maintain and service debt level
This may look complex. In fact it is terribly simple. Read the column headings - I have broken it right down so that you can follow the mechanics of the cashflow.
Let me know if you would like as copy so you can play with the myriad of variations available.
There are many ways this can be done. It is a win/win and we do not need any more drama!
There are some absolutely amazing things about steemit.com - truly astoundingly clever people with ridiculous Hard Drives and software between the ears. Then there are the blind spots. Please let the community be Decentralised as there are some people out here. Some of these people are capable and experienced.
Here is a cracker: In the White Paper ... still:
"SP can only be converted back to STEEM over 2 years via 104 equal weekly payments."
Confusion reigned and they all got wet.
Follow @ebryans for Content:
I could try to do this myself but ... share the lava eh!!
This is how it would work:
There are some absolutely amazing things about steemit.com - truly astoundingly clever people with ridiculous Hard Drives and software between the ears. Then there are the blind spots. Please let the community be Decentralised as there are some people out here. Some of these people are capable and experienced.
Here is a cracker: In the White Paper ... still:
"SP can only be converted back to STEEM over 2 years via 104 equal weekly payments."
Confusion reigned and they all got wet.
Follow @ebryans for Content: