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RE: Guardian of the steem universe : A different perspective on the role of whales within steem ecosystem [ part 2]

in #steem8 years ago (edited)

steem price increases it makes it more difficult for users to gain influence

it doesn't. At least, not really.

for example, lets say there's 1 trillion vests in the whole system. Steem costs $1. I buy a .001% share for $10, 000.

Now lets say steem doubles in price to $2. You're correct that now, my $10K only buys me a half sized (.0005%) share.

But -- its buying me that share in a double sized system. A system that offers twice the rewards.

FOr example if my $10,000 .001% share of steem buys me a vote worth 10 cents when steem is worth $1, my $10000, .0005% share buys me a vote also worth 10 cents when steem is worth $2.

DOes the guy who bought his $10k worth of steem first, when the price was lower, have an advantage over the other guy who bought it when the price was higher? sure. So for example, if you buy $10K at $1, then i buy it at $2, youre going to have twice (actually 4 times because of quadratic weighting) as much influence as I am. But thats the way its supposed to work

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youre going to have twice (actually 4 times because of quadratic weighting) as much influence as I am.

Not 4 times. That only applies to the extent you are the only one voting on the post. If A has 1, B has 2, and C has 3, then A+C yields a reward of 16, but B+C yields a reward of not 64 but 25.

Overall your point that buying influence doesn't suffer much as the price goes up (but does a little, and that's okay) is a good one