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RE: An Open Letter To @elipowell

in #busy5 years ago

Every upvote draws on the rewards pool. Stinc has significant stake which is not now drawing down the pool, and were that stake delegated and drawing on the pool, the portion of rewards extracted by whales would be reduced.

Well yeah! that's obvious. Every upvote any steemian cast extracts 'something' from the communal inflation rewards pool. No matter how big/high or small/laughable their SP is.

But then, is not exactly this The Law of this game? ¿¡DISTRIBUTION?!

Are just the whales the only ones entitled to extract the most of the collective rewards pool with the biggest impact and then get pissed off if someone decides to distribute better their inactive & frozen wealth with justice scattered across many more willing & active little souls to make the majority of the community thrive?

And then, the biggest mammals here pretend that we, the tiny species of this pond who create content and the actual consumer resource to generate the only product that can be mined in this muddy puddle, be also the ones who now should Ad Honorem carry the load of marketing, onboarding, recruiting, teaching, educating and convince a big deal of new slaves to throw their time, work, effort, blood, sweat & tears in the pool so they can extract the maximun rewards without doing anything else than put & lock out just a few dollars in their voluminous piggy bank?

How so?

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I'm not saying the whales are so entitled to the rewards pool, but they certainly treat it as if they were, and stake-weighting does entitle them to it, because it enables them to extract it. They would be offended by a reduction in their ROI, and Stinc serves the market, which is almost the whales alone. I believe this is why HF21 will include EIP, which doubles curation rewards and halves author rewards, as well as taxes the pool to fund development. It also increases flags able to be flown by 25% of VP, of which whales have the vast majority. Flagging returns rewards to the pool, and whales then can claim most of those rewards too.

I have noted often that these whales were not experienced investors skilled at increasing the value of investment vehicles and attaining capital gains, and the code enables extraction of rewards via stake-weighting, rather than enabling capital gains. I have even speculated that given a declining market cap, user retention, and token price, the whales face diminishing returns from their business model of extracting ~90% of rewards, and that EIP is intended to allow a last gasp of profitable extraction that leaves Steem no longer viable, and allows the whales to move on to the next target.

Since their stake is necessary to extract the rewards, they are unwilling to abandon it until it becomes worthless, and the permanent blockchain is evidence that can be used against them in the event of tort actions - or more dire legal actions, since proof of death threats, extortion, sexual harassment, and more remains recorded there. Only if the witnesses quit and wipe their drives will that evidence be deleted. Without substantial income from Steem, witnesses will have little incentive to maintain the blockchain.

This is speculative of course, but the whales being Stinc's market, and extracting the vast majority of rewards is not. Given how disingenuous many of them are in order to attain those rewards, I am confident that were Stinc to reduce their ROI by massive delegation, there would be hell to pay in Austin.