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We doubt if referral system is MLM! MLM constitutes deeper things. This is referral system is plain to see if it happens but what comes first, is steemit getting ready to host the masses especially interface-wise, which is in the making!
Great thoughts!

but what comes first, is steemit getting ready to host the masses especially interface-wise

SPOT ON!

Afaik, it helps growth and it is not entirely MLM if done right.