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RE: Convergence: The Key To STEEM's Massive Explosion In The Near Future: Part 6
When you add in another 100,000 people posting, commenting, and upvoting, you dont think the reward pool will be diluted and each person's share is reduced?
Please explain how that can happen...
The vast majority of those users will have tiny amounts of SP.
As a holder of X% of outstanding SP, why wouldn’t one get roughly X% of the reward pool, irregardless of whether there are 10,000 members each holding 1000 SP or 1,000,000 members each holding 10 SP?
Again, I am assuming at least some self-voting.
Because your X% is not going to hold constant. It will be diluted down by the fact that others come on board and are receiving SP along the way. Plus, there could be many who buy STEEM on the open market, convert it to SP which means the SP percentage changes.
And yes they dont have much SP but when a million or so are added up, that is a lot of SP.
I didnt an article how the reward pool is being diluted for the whales. Their percentage went from 88% down to a little over 80% in a year. It will continue to drop.
At the same time, the minnow pool went from 1% to 5% over that same period.
The reason for this is more minnows in there staking claim to the rewards.
A year ago, when there were a lot less people, the whales were getting a much greater share of the reward pool.
One way this wont happen individually is if your powering up rate outpaces the growth rate of active users. If you do this, then your % of the reward pool could actually increase.
Why not?
As I said in my first comment
Sure, if you keep cashing out, your percentage of total SP will drop over time. But since yearly Steem inflation is “only” about 9%, keeping ahead of that by not constantly cashing out is not difficult.
Not all STEEM is in SP.
If, for example, there is 50% of the STEEM available is in SP, and I buy the other 50% on the open market and power it up, I just entitled myself to half the reward pool. Hence, what was 100% based upon the previous SP is now 50%. And you will only maintain that percentage if you vote your full allotment of VP a day...because the entire ecosystem is voting daily at 100%.
Secondly author reward are 75% of the pool. If there are 100 articles a day, an an example, and you write 3, all things being equal, lets say you get 3% of the total authorship pool. Now what happens when 30,000 articles are written a day? You still going to maintain the same 3% take of the author pool.
Sure in the real world, not all articles are created equal. However, you have around 25K active users a day....think about that number being 250K a day....ever at 3 cents, 5 cents, 20 cents, those 225K minnows are going to start sucking a bigger portion of the authorship pool.
If there is 100,000 SP available a day right now with 25K active users, you dont think the average reward will decease 6 months from now if there are 250K active users even if the pool increase to 110000 SP a day? Of course it will.
Sure, the average reward will decrease, but I just don’t see why the rewards for UserX who maintains X% of Steem Power would necessarily fall dramatically.
If UserX stays active posting, commenting, self-voting a bit, and curating, I don’t see how UserX cannot, at a minimum, keep up with inflation. And holders of SP earn Steem interest, currently of about 1.9% per year:
https://steemit.com/steemit/@preparedwombat/how-much-interest-does-your-steem-power-earn-i-finally-figure-it-out