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)
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.
@whatsup