You're right - flags have to be handled with care.
But I think it would also be interesting to implement another downvote option which would be separated from the rewards pool.
Instead, those downvotes would have only an impact on the ranking-algorithm on Steemit. That way, bad content could be removed from the visibility of trending/hot pages without destroying the rewards and driving news users away.
What do you think about that?
I like that, actually. That's one of the sorts of things that I thought of mentioning, I just didn't seem to have the words for it.
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