DPOS is a Distribution Method Not a Means to ROI
Delegated Proof of Stake, let's talk about it.
All cryptocurrencies have some type of distribution model. The thing that makes something a currency is when enough people believe that it holds value and will use it for a method to exchange value.
Each Cryptocurrency has to decide how to get their currency in enough hands to make it valuable, two of the popular methods are POW (Proof of Work or Mining) and POS (Proof of Stake) in our case DPOS (Delegated Proof of Stake) (just adds delegation to the POS system)
What does that mean?
Most but not all cryptocurrencies have inflation.. New Coins are Issued and there has to be a method that is somewhat fair to get it in many hands in order for people to agree it hold value.
Proof of Work means that you have to do something to earn the newly minted tokens. In Bitcoin's case that is mining. When you mine a Bitcoin it is about distribution. It is widely accepted that the miners sell to pay for the expenses of mining equipment. Otherwise, why mine? The developers and large stakeholders understand they have to create demand to use Bitcoin.
In a DPOS system, inflation is allocated by those with the most stake, it is assumed that they would try to make excellent decisions on how to allocate that stake because they have the most to gain or the most to lose as they create demand for the tokens.
I would say that allocating Inflation to yourself such as Traf, Kevin, Haejin and others is a misallocation of the inflation if they are not adding serious value to Steem. SteemIt, Inc delegating to dapps is likely a much better model.
Two things have to happen, you have to have Steem in enough hands to agree it holds value and also there has to be demand for the token. Currently, there is neither. I would not purchase Steem under the current conditions because even with the changes that are coming I do not see a healthy distribution developing and the large stakeholders are devaluing everyone's stake by self allocating.
DPOS was meant to be the method of stakeholders allocating the inflationary Steem to the most valuable places, not for ROI.
My view of the Steem model was that we use the inflation to encourage end-users to use the site, we encourage developers to build, we pay our witnesses and I love the idea of funding the SPS.
The idea that some of our stakeholders have that Inflation was meant to be ROI is ridiculous and short-sighted. I think it should be used to fund development (SPS). Engage and keep end-users, and other projects that add demand (thus value) to Steem.
One of the reasons I am migrating to PALNET.io more and more is they have active and engaged stakeholders who understand the responsibility of distribution. Active moderation and engagement.
I know they have weekly meetings to see how things are going.
I know they answer questions and listen to feedback.
I know they ask questions... "How would it be if..."
They are active members that many of us know.
Yeah, that's a lot better and if Steem were to fail and we had enough users on the forks... they could make their own chain or move to another.
I upvoted using my newly staked PAL. I like STEEM/PAL because I can grow my holdings.
Cool grats on the newly staked Pal.
thank you.. and I have some upvote worthy votes again. I am planning on re-investing my delegation for just PAL for now. I guess I'm in this for the next few years.
Speaking my mind actually...and I suppose that's the main reason many others are migrating there too (myself included)
From a content point of view I feel that steem is a lost cause, and it is not because of 75/25
I legit hate it that people trash talk me when I talk trash about Steemit. When you start to really look at steemit the company it is a total shit show of abuse, premining, value in just a few hands, people sitting around doing nothing and getting massive rewards for doing so.
No wonder why the market cap on steem is so freakin low and there is nothing other them steem-engine at the moment that gives me any hope for it.
I mean I can understand some people getting upset with my comments about this but they are there for constructive feedback because I give a shit. I feel like so many are blinded and really can't see what is going on.
I've seen far more work here on Palnet and this community in the last week then I have seen out of steemit over the last two years. That should seriously say something.
💪🏼🙌🏼💯
Posted using Partiko iOS
Says a lot actually. Steemit should have as CEO a man with vision and skills, right from the beginning.
This is probably the realest comment I've read in a while, well done sir! Dropping the truth bombs
I love it when morons hate being called morons for calling other people morons simply because they have no clue what they do.
So one week of palnet "work" (huh, way to try and suck up though) trumps Resource credits and Mira, well yes, you can't see those things, so to a moron like you it is completely reasonable to say that "people doing nothing", and your constructive feedback thus far has literally been "can we form a committee of some kind so people are protected from exit scams, because there must be a way to stop them" or "hey can we restrict people spending because it makes no sense that we cannot".
Palnet isn't even decentralized from what I understand. So much work for something that can easily fail?
Steem isn't decentralized either and can also fail, some might even say is failing.
Steem is extremely decentralized. More than Bitcoin and has much less marketcap. Also we have the first true working governance in blockchain. Next step, Governments. That's groundbreaking.
https://www.binance.vision/blockchain/blockchain-use-cases-governance
lol.
All one has to do is pay attention to see that we are not operating in a decentralized fashion. You can quote little sayings and platitudes if you want to deny the reality of the situation.
The majority of front ends are built inside the webapp ecosystem. Don't blame the blockchain for Dev's inability to build decentralized code. I agree, large centralization issues face Steem. We need to learn from bitcoin's past mistakes and build a decentralized Steem Repo to vote upon the changes and improvements made to the blockchain. Leaving this to only 20 witnesses or a tiny corporation is a recipe for disaster.
What is about Steemit that makes you believe decentralization is even a good thing? From where I stand, a lot of the problems here stem from the fact that there's no clear strong leader with a vision to take charge. Everything is a jumbled mess and goes nowhere because of the decentralization.
Decentralization being this magical unicorn that makes everything great is just a fairytale people have started to believe without questioning it.
@schattenjaeger The internet was built for this , You do not know what you are talking about.
If you use bidbots, you are part of the reason investors don't like this blockchain.
I don’t use, or even support the existence of, the bid bots.
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Delegated Proof-of-Stake (DPoS) is not primarily about distribution, nor is Proof-of-Work (PoW). Witnesses (DPoS) and miners (PoW) do get paid but coin distribution is not the reason why witness servers are run or mining is done. Those things are consensus mechanisms in a decentralized network that needs to arrive at a consensus about the contents of each block without a centralized authority. Every consensus mechanism exists to solve the Byzantine generals problem. In PoW chains, miners try to guess the nonce parameter that produces a hash function output that has the correct number of zeros in the beginning that is part of an unconfirmed block that contains the unspent transactions, a hash of the previous block and some headers and stuff like that. There is an astronomical number of possible nonces only a few of which produce the correct kind of hash. Mining is all about computing hashes from candidate nonces (and the rest of what a block contains). It is very labor intensive and it is meant to serve as a price of admission to a select group of parties that has the right to participate in a draw that decides who gets to sign the next block. Those who pay the price are much less likely to want to cheat as in produce an incorrect block which would be detected because there are other nodes that confirm the correctness of the block. That is the whole point of mining in PoW.
In Delegated Proof-of-Stake (DPoS), the point is for a stake-based voting to elect trustworthy block producers because electing untrustworthy ones would lead to voters with high stakes to lose a lot of value. DPoS can be considered less secure but much more scalable and efficient to run.
Both miners and witnesses have to be paid because nobody would do what they do for free because what they do is costly, although running a witness node is orders of magnitude cheaper than mining.
On Steem, DPoS and Proof-of-Brain exist for entirely different things. Proof-of-Brain is a just a catchy name for a mechanism to distribute some coins to people who use the chain in ways that the user community deems valuable.
Great points, well stated.
Yep agree on the delegated Proof of Stake being also a method of selecting trustworthy witnesses, but yet it is also more than that, at this time it is our method of distribution. I see no value in voting it back to the same people who's best ideas have lead us here.
Thank you for such a thoughtful and intelligent reply.
Delegated Proof of Stake is literally nothing but the consensus mechanism. The word "delegated" in it means voting for witnesses. Proof of Brain is our coin distribution method. Witnesses only get 10% of the inflation pool. It's important stay clear on the terminology. This is confusing enough for a lot of people.
Delegated Proof of Stake is the consensus model for recording blocks of transactions. It's the voting of block producers and the determination of valid blocks. It has nothing to do with the distribution model. You could have any distribution model alongside this block consensus model.
The distribution model is "Subjective Proof of Work" as it was originally described in the white paper or "Proof of Brain" as people have started to call it more recently.
yeah, that's a good point. Probably more technically accurate.
However, we need a distribution of Steem and stakeholders piling on themselves isn't adding value.
Great post @whatsup, stick to it.
:)
I Just Want to Play Steemmonsters @whatsup
haha well go play them it! I agree it is a solid game, no need to worry about the politics then.
Along with the discussion of
Value for Steem, and how to go about getting it accepted is the equally important idea behind Perception.
Perception in the greater market is important.
It's not about REWARD Dollars.
It's how does the market value Steem?
AND the value of Steem is a perception based on a few factors.
How many users? Faith in long term viability, among others...
So, what happens with the value of Steem, is, in the greater marketplace, people see users go from 1 million daily to 100,000? Or from 100,000 to 10,000? Or 1000?
When small accounts leave, perception FOR WHATEVER REASON in the marketplace is, the platform is shrinking, therefore, the VALUE of Steem is going down.
Perception in the marketplace is more important than focusing on Reward dollars right now.
HF21 should be about implementing Downvotes, about implementing the SPS rewards... TOO MUCH Economic change all at once is VERY bad. It is destabilizing. AND again, Markets abhor chaos.
I agree. Also the tone in which the changes are coming.... We have to do something! Is not a strong message.
Good, it doesn't have to be marketed or phrased in anything but the reality of "fixing it before it sinks". So yes, we have to do something.
I'd suggest that Steem is the best Data chain in existence. People are too focused into social media bullshit.
who needs a data chain and how do you market that.
The self-allocation you mention is counter-productive. Those with the most power ought to be doing what they can to make their Steem more valuable rather than just accumulating more of it. A thriving community where creators are seen to get rewarded is more likely to grow than a place where it just looks like the rich get richer. A growing Steem community should help the price.
I'm not self voting at all. My stake goes to helping others.
I'm using Palnet a bit and seeing some benefits.
I'm just annoyed by how people refuse to speak English, as opposed to "DPOS" and "Subjective Proof of Work" and "Consensual Subjectiveness of the Delegated Objectification of the Proof of the Brain's Stake of Work".
^ Now there's a model we should try.
Sometimes you just have to learn what words mean to participate. If you want to limit yourself to the top 1000 most used English words it can be done but it doesn't magically simplify complex topics.
It was tongue in cheek, stop being so autistic.
(Also, I'd argue my vocabulary is more than likely larger than yours.)
Can you please speak English instead of using a word not everyone understands?
No, that doesn't work because my reply doesn't make use of a single pretentious big word. Just your regular, run-of-the-mill stuff.
Or to put it in another way; it was certainly not my intention to obfuscate you with my sesquipedalian tendencies, which, albeit unparagoned, is mostly an idiosyncratic quirk, rather than an attempt to gasconade - and certainly nothing I excogitate to any serious degree.
I'm a little rusty on my elitist big words, but I can definitely play that game. :)
And I'm not even a native speaker, so it really isn't that impressive in my IMO, not gonna ngl.
Yeah, definitely unpretentious. There is a difference between obfuscation and using precise language.
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