Hi Everyone,
This post contains a video, which follows up on and supports a previous post of mine, in which I discuss the rewards pool. The link to the written post can be found at the end of this post. The link to the video can be accessed using the link below.
The video can be essentially divided into four parts. These parts are as follows.
The rewards pool is created from the newly created supply of Steem. Before entering the rewards pool, approximately 10% of the new supply of Steem funds witnesses and 15% supports interest on Steem Power. The remaining 75% is to be distributed between content creators, curators and applications. The curators determine how the rewards pool is distributed using votes. An upvote rewards the content creator with approximately 75% of the vote and the curator with 25% of the vote. If the content creator used an application with a beneficiary requirement, a percentage of the content creator’s rewards are distributed to the application.
The value of an upvote is based on Steem power and voting power of the curator. The more Steem power an account has, the larger the upvote that can be given. As more votes are given out, the voting power of the account falls. Lower voting power reduces the size of the vote. Voting power is replenished at a rate of 20% over 24 hours. If an account runs its voting power down to zero, it will take 5 days to be fully replenished to 100%.
In my opinion, the advantages of the rewards pool can be summarized as follows:
In my opinion, the disadvantages of the rewards pool can be summarized as follows:
I believe the rewards pool is one of greatest strengths of Steem. It has so much potential in so many ways. It encourages activity and it greatly facilitates the distribution of Steem. The rewards pool has several problems as I have highlighted in the video but all these problems can be fixed. I have written several posts with workable solutions. These posts are available at the end of this post.
I hope you enjoyed the video. Feel free to ask any questions or express any opinion regarding the content of the video.
The economic implications of the existence of the rewards pool
Steem explained by an economist
Steem explained by an economist (Video Version)
Bid Bots and the possible economic implications
Changing the way voting works to improve fairness and rewards – My little fantasy
The Trending Page AKA the Front Page of Steemit
How do we prevent market failure caused by over delegation of Steem Power to bid-bots?
Advice to Potential Investors in Steem
Is the Steem ecosystem in disequilibrium? (Part 1 – Witnesses)
Is the Steem ecosystem in disequilibrium? (Part 2 – Content Creators and Curators)
Is the Steem ecosystem in disequilibrium? (Part 3 – Applications and Services)
Is the Steem ecosystem in disequilibrium? (Part 4 – Passive Income)
Is the Steem ecosystem in disequilibrium? (Part 5 – Combination of solutions)
Proposed changes to the Steem rewards and curation algorithms
If you want to read any of my other posts, you can click on the links below. These links will lead you to posts containing my collection of works. These posts will be updated frequently.
