Yesterday I did an analysis of the post numbers and payout values in the reward pool for that day, inviting anyone to define or quantify exactly what would constitute "draining the rewards pool".
There are some thoughtful and insightful comments and the full details to be found here:
@gavvet/draining-the-rewards-pool-the-numbers
@smooth pointed out that its really about perceptions
and
@timcliff said a better term would be "hogging the rewards pool"
In line with those comments, I think a misconception has crept into the steemit community.
That misconception is about what the rewards pool is exactly...
I am also convinced there are many that do not understand where that pool comes from and who actually controls it and why.
Many have erroneously called the rewards pool the "author rewards" pool.
Even if it may have been documented as such in some places it has never functioned as a rewards pool purely for "authors"
Comments have always extracted rewards from this pool, as have software development notifications, updates etc.
Software updates are rarely "lost works of Shakespeare" but they are often at the top of trending page and will continue to garner hansom rewards not because of the authors content, but because of the behind the scenes work they represent and the steps these projects take to growing, expanding and enhancing the STEEM ecosystem.
Comments will soon also be algorithmically (is that a word) getting a larger share of the rewards pool.
In summary:
The rewards pool is exactly that... a pool for allocating rewards... and its definitely not limited to just authors.
The rewards are there to be used to grow the entire STEEM ecosystem.
Now who fills the pool?
Is it magic internet money that mysteriously appears in a constant stream for allocation to authors on a whim???
Not at all. Although that's a nice metaphor for noobs.
I comes at a cost...
...and that cost is a TAX on every person bold enough to risk holding SteemPower.
Simply put, the more SP you have the more TAX you pay, to the tune of 9.5% every year.
The whales pay the most TAX.
Put differently, the whales fill the rewards pool.
They accept this TAX as they feel STEEM growth will outperform their 9.5% loss year on year.
For whales filling the reward pool is a daily investment.
For their investment they get to "control" how the rewards pool is utilized and they do so in a manner that they perceive will maximize their investment - the growth of STEEM .
Whales acting in the best interest of their investment should, by their activities, end up benefiting the smaller investors in the community.
Thanks to Sybil and her tendency to attack, STEEM cannot be a one-person-one-vote democracy, therefore it is more like a stake based Feudal System where the kings, lords and ladies are the overseers.
So how are the WHALES doing this?
They are responsible for the distribution of the rewards pool that they, through their ongoing investment, create. With the help of Guilds, the rewards distribution situation is vastly improved, giving us a long tailed curve.
Roughly:
20 posts > $50 = 25% of reward pool
50 posts $25 - $50 = 25% of reward pool
100 posts $15 - $25 = 25% of reward pool
300 posts < $15 = 25% of reward pool
So here we have the cold hard rounded off numbers of how the reward pool is currently structured. These percentages and numbers should be reasonably accurate for any given day, although the exact numbers will vary given the fluctuations in the reward pool size as the market cap of STEEM fluctuates.
The goal is to have as many good contributors rewarded as much possible, but to also grow the ecosystem at the same time. It's a delicate balance.
The average garden variety humble "peasant" author (remember: feudal system) should not be aspiring to the top of the trending spot... that spot or possibly even the top 5, 10 or 20 spots is reserved for those whom the "kingly whales" deem to be worthy.
Adding significant additional value to the entire ecosystem. Its not about content, quality etc. at the top of trending. Its about whether you are a known entity and are you bringing additional value, besides just content, to the entire STEEM Ecosystem.
Based on the numbers above, roughly 25% of the daily rewards pool is allocated to R&D, a necessary evil in this infantile state that STEEM is in and also necessary if we want STEEM to really grow.
So the top trending posts are generally R&D type rewards to individuals or teams developing the platform or enhancing the ecosystem in some other way.
Lets think about top trender's, we've had in the past:
- Good Authors (when authors were scarce)
- Celebrities
- Billboard crowdfunding
- Published Authors
- Bitshares stuff
- Software Projects (by the plenty)
- Pretty girls (when girls were scarce)
- Steemcleaners
- Robinhoodwhale
- Curie Updates
- Curie Authors
- Steem Guild Authors
- Sports businesses
- Steem Voter dailies
- Ozchartart
- etc.
It soon becomes clear that not many on this, past to present, list are there because of mind-numbingly good writing.
That's just the reality of it all... It's the way the system is, the top spots and rewards go to where they are felt they can do the most good at expanding the "empire".
If we don't like it, we can always buy up some STEEM... power up... pay the TAX... and then own the right to determine where the rewards go.
Otherwise we should just accept that others who have done the above and pay the TAX get to make the decisions as to where the top rewards go and quit whingeing or whinging about it.
On a positive note, if we do aspire to the top spots on trending, without buying up a truckload of STEEM, to put ourselves there, then the following is recommended.
Don't just write...Get involved.
There are plenty of opportunities to add value to the community waiting to be discovered:
- There was no steemcleaners until @anyx made Cheetah and others gathered round.
- There was no @steemsports until @steemdrive got together with @furion
- There were no guilds until @donkeypong started whale whispering
etc. etc.