Below I make a case for the toxicity of Steemit, Inc's oversized STEEM holdings. Please let me know if any of my facts are off.
There is a valid argument that "legacy compatibility" via a corporation is needed for successful blockchain apps and communities. This said, any such compatiblity scheme would need to guard the blockchain from the corporation. Corps are subject to human flaws in many ways that blockchains are not, and in order to keep the chain pure, an "oil and water" type scenario must be used. Here are the results of putting soap in the water:
If most of gains go into Steemit, Inc, this lowers anyone's incentive to invest in our platform. It also creates other skews/imbalances.
If we are talking about nixing steem dollars (which would be as ridiculous as killing Steem Power 1.0) then we should sure as hell talk about rebooting the entire economy with less influence on the part of Steemit, Inc. Please note I am not calling for its disollution or removing it from the community, but for STEEM the chain to prosper, Steemit, Inc. needs to hold less (possibly zero) STEEM.
Let's go through a steemit, inc. zero-steem scenario for a second, think this is really well-worth doing. If steemit, inc. had no stake in the STEEM currency, it would have an immediate need for profit. Profits are needed for a corporation to stay afloat, everyone knows this. Steemit, inc. should not be in the oppositional position of needing to get funds by harming the STEEM price. This is a contradiction on my part as in the past I've praised sell-offs on Steemit, Inc's part because they fund development. In that regard, sell-offs are good.
like many other prosperous open organizations.
