@good-karma, this is an important topic, so thank for bringing it up!
For me, the primary purpose of some kind of referral tracking (for all "versions" of Steemit) isn't really about rewards, but about knowing whether anybody is "listening" when I mention Steemit, outside the Steemit framework.
Let's hypothetically say I write a Steemit post called something like "Why I'm not hanging around on Facebook much, these days" and write a nice intro to Steemit. And distribute it in "my usual places." I did this with a "non-Steemit" related post a few weeks back, and it got about 1300 reads... so I at least know that my offsite followers read my stuff.
So, let's say I set this article free and include an "if this sounds interesting to you, click here to come join me!" link. Groovy. Some people will probably take a chance and do it.
BUT NOW... how do I know that somebody signed up as a result of my efforts? My issue is that I just want to be connected to these folks, somehow... because we're "selling" this as a community, and as a community member, I should at least be able to automatically follow these new people. That makes sense, right? What's more, it would be nice if they were "auto-followed" in a separate category called "referrals." So I know that they joined.
It would be even cooler if we had a message system here on Steemit (Yes, I know, busy.org has one... but I'm on Steemit, right now) so I could actually send them a personal message to (a) welcome them and (b) help/encourage them to start posting and become active. Again, that's what a community does. Or a least should do.
Now, for the rewards? Speaking from 20+ years of experience in user-generated content sites, the SINGLE BIGGEST ISSUE with "referral members" is basically "dead accounts." The REASON so many accounts end up dead as a result of referrals is that rewards are given simply for getting someone to sign up. Sooooo, I persuade 300 people to sign up to get my "rewards" and none of them ever post anything... STUPID... it's a financial drain and a waste of space.
So I would propose that IF there were to be rewards attached, it should be something along the lines of the referrer getting a 1% "royalty" of the referree's active posting rewards WHEN, and ONLY when they reach 1000SP, or something like that. In other words, I only would get rewards for someone who (a) posts regularly (or invests cash) and (b) doesn't just come in and cashes out every time they have $2 to their name... which is another "plague" that falls on reward based sites.
Sorry to go on at such length... but the experience of ALL BUT ONE SITE of this type having shut down in the course of 20 years... often over the issue of mismanaging referrals (usually in service of wanting to grow too fast), tells me it's something that has to be carefully planned and implemented with the utmost of care.
Let's not shoot the goose that's laying golden eggs!
The fact that there is still no messaging on steemit blows my mind.
If steem implement a referral system users would earn a certain percentage of referred users's rewards indefinetely.
It would be very difficult to give a reward per sign up without the system being gamed and abused. Centralized websites can do it because of KYC.
Well, I wouldn't want people to get a referral reward simply for signing people up... as you say, that would open up the system for being gamed and abused-- seen it happen lots of time. Mostly, I just want to be able to track people who sign up... so I can connect with them, and encourage them... which brings us back to the messaging system... MUCH needed.
Then implement a referral system without rewards. See my other comments to this post why I do not believe in indefinate referrals. It'll create pyramids of split earnings and I can tell you, some will be very focused on this and in the end will sit back, do nothing on Steemit and take quite a bit of earnings. I think Steemit should not provide such changes, Steemit will grow even with a rewarded referral feature.
Good points you bring up...Dead accounts are not issue in this case because they work only after they start earning by contributing.