Good analysis. What happens to curators who vote for lower valued post less than 16 Steem. Will they earn less too since the post earned less? Then curators will avoid small valued posts at any cost. It will disaster for minnows or less known authors. Very few curators will search gems and vote for it.

However, minnows can sell their Steem for PAL and move to @palnet which has much fairer system. Though I am an orca (with combined SP from multiple accounts), I don't/can't curate regularly. I love to delegate projects such as @palnet, @steemhunt, @actifit, @dlike or others who need SP delegation. I believe Steem should be backbone currency rather than concern about contents. SMTs/DApps will figure it out.

Moreover, EIP will affect posters in other DApp such as @steemhunt. However, they are also rewarding their own tokens.

I agree it is a bad experiment on wrong time. Steem is already in bear mood compared to other cryptos. STINC is creating FUD among many users as reflected by the price. Their focus should have been SMT not EIP. Who runs STINC who have very little knowledge about how market works.

I personally think Steem should be removed for reward pool and should become backbone token. Let's SMT/SCOT play with all sort of reward distribution algo experimentations. @palnet is already becoming a success story.

Steem's supply (8.2% inflation), HF21 and lack of marketing is trumping its demand. If it had a 2-3% inflation, it would easily sit in top 30 in CMC rank..

At end of the day people will move to other DApp where their needs will be fulfilled. @palnet could be a good alternative for minnows.

Upvoted with 2 PAL, great writing :)