UPDATE Feb 14, 2018: The formula discussed in this post isn't used anymore in the reward distribution process. I have written another post about the current reward distribution formula and why it's superior than the old one discussed in this post.
I see a lot of people complaining about the reward pool abuse on Steemit. Some people take the matter on their own hands and do their best to prevent it. I appreciate all the efforts to prevent the reward pool abuse on Steemit.
Unfortunately, the reward pool abuse on Steemit cannot be prevented with flagging, or other manual or automated methods. The problem is in the core of the reward distribution mechanism. It is the formula as explained by @dantheman in this comment that is causing this problem.
The problem is in the formula.
The reward pool abuse problem cannot be solved without changing that formula. That formula will always result in disproportionate favoring of users with larger Steem Power, much more than their fair share.
There is only way to solve this problem. You simply change the formula from Rewards = (votes)^2 to Rewards = votes. That little change alone will result in linear distribution of the reward pool according to the Steem Power. That in turn will result in this type of scam not being profitable anymore.
On the contrary, low quality content will start to lose money no matter how much it is promoted with votes. Every user will need the votes of other users to make money on top of their investment, which is the rational way of operating Steemit. As a result, good quality content will bubble up instead of content that is promoted with bots.
Steemit is bleeding cash.
I have explained the math of this problem in a separate post. This problem needs to be fixed soon, because Steemit is bleeding cash at this moment as I have explained in another post. Neither Steemit nor Steem will be sustainable on the long run unless this problem is solved.
What do you think?
Please let me know what you are thinking about my explanation. I'm open to feedback. If you think this theory is wrong, please explain it to me. If you come up with a rational explanation, I'm ready to give up this theory.
But if you can't, it's our duty as Steemers to request this problem to be fixed. In that case, please resteem the related posts or explain the problem in your own words, so that we can raise awareness around this issue.
If this problem doesn't get fixed, Steemit won't be able sustain itself in the long run. That will be a pity and sad for all of us.
Are they doing anything to prevent this from happening or does this fall on deaf ears? Part of me wants to fight. Another part of me wants to find a new platform.
What can we do to fight this crap? Grrrrr.