Indeed. Now you have to flag if you want to use all your voting power and get the reward potential from your account each day because part of the upvoting power relative to a reward pool has been diverted to flagging. If you flag those posts on trending to get your rewards for flagging each day, then people with more SP might flag you back on your posts. You might get rewards for flagging, but lose for for being flagged on a post. Meanwhile, those with lots of SP can flag without much worry of retaliation. And the less everyone else flags, the more the higher SP holders flags reward them (just like if only they were upvoting, they would get all the curation rewards).
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hold on, rewind.......
are you saying if we flag, we get a portion of the rewards removed, do all the rewards not go back to the rewards pool?
I think what he's saying is that no matter what you flag, the portion of the rewards that are removed go back into the rewards pool – but odds are that the person that you flag has other posts awaiting vote payout, so in theory you are rewarding everything else that the person that you flag has written or produced that isn't that specific thing that you have flagged.
I would go a step further and point out that when you flag something, you are literally taking the rewards that you have control of from the reward pool and giving them to literally everybody else – including every bad actor that you couldn't catch or didn't have the SP to do anything about.
This is one of the core problems with the entire idea of downvoting as a means of community management that I have been talking about for quite a while. It doesn't matter how much SP you have if you are literally just rewarding every other wrongdoer or bad piece of content anytime you flag something. Ultimately you're just making your life harder because your rewarding more things that you don't want then you are hurting things that you don't want.
In theory, you're also rewarding things that you do want but odds are good that the vast bulk of contents on the blockchain is stuff you either don't care about and thus don't want to reward or stuff that you don't want and thus don't want to reward, and only a narrow slice of it is stuff that you like and want to reward.
Upvotes are far more focused and useful tools than downvotes have ever been.