Quora Onboarding Initiative | Question Answered: What is the updated reward pool distribution in Steem blockchain? It has so many hardforks, so what is the latest updated reward pool distribution?

The last hard fork in which the reward pool distribution was changed was HF 21 three months ago. In that hard fork, the Economic Improvement Proposal was introduced.

It introduced:

1. The Steem Proposal System, which is a kind of DAO where anyone is free to ask for funding for any project that benefits the ecosystem. The proposals are approved or turned down by stake-based vote. 10% of the reward pool is allocated to the proposal system. The content reward pool was reduced from 75% to 65% to compensate for this.

2. The splitting of content rewards 50/50 between curators and authors. It used to be 25/75 for curators and authors before.

3. The free downvoting pool. Everyone gets 2.5 full downvotes worth of free downvotes per day that do not tax the daily voting power quota.

4. The convergent sublinear reward curve. What his means is that the post payout being between 0 and about 20 STEEM, payouts follow a curve that is slightly below linear with respect to net rshares (voting power) voting on that piece of content. What this accomplishes is taxing low-level vote farming that used to be something of a problem before the HF. Now its impact is much smaller.

The changes are designed to work together to achieve the desired result which is rewarding deserving authors for quality content and curbing abuse. I was sceptical before they were introduced but I have to admit that I was wrong. I’ve seen many authors who used to earn very little earn ten times more that they used to. Typically, those authors do not have a large stake. Vote selling is now used for what it was originally intended to: paid promotion at a financial loss. That’s because the downvoting pool allows the user community make sure nothing that has bought votes on it that gets to Trending gets positive ROI from buying votes. Trending is now better than it used to be. In fact, something that was hard to believe happened: bid bots became curation projects that upvote quality content for free! That’s because of the combined effect of the 50/50 split which means that curation is more profitable than it used to be and the free downvoting pool keeping vote buying unprofitable and thus much less frequent than before. Curation projects such as the extremely powerful OCDB (almost 5 million SP) have emerged to break up vote farming operations. OCDB is so powerful that not even the average whale is capable of resisting it. Another notable project engaged in effective combat against abuse is CURANGEL. The rewarding system actually not only works but absolutely rocks these days. Most of the abuse that use to plague the platform in the early days has been stamped out by community effort. The answer has been active curation projects that are funded by community members with Steem Power delegations.

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