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How to fix uneven distribution of wealth in steemit by himalayanguru

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· @himalayanguru · (edited)
$0.23
How to fix uneven distribution of wealth in steemit
Thinking about steem energy ( AKA steem power) differently
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Steem power is translated to efforts made by the swarm. It's our investment of time and energy associated with our interactions with Steemit platform. Here is the quintessential problem associated with Steemit right now and is also a major point. This can be solved easily. Otherwise I wouldn't write about it. The community needs to come together and solve this major pain point if Steemit is to succeed long term. This write-up won’t be long. No one reads long posts, people like to vote posts that looks long without ever reading it. They assume that it contains thoughtful contents and they upvote it. That’s just wrong, superficial and it's being greedy. So those guilty as charged need to stop!  So here is a critical issue and a major pain point from the point of view of the users. Let me lead by the problem.

Problem definition
---------------------------
So yesterday I made a decent and a reasonable post where I wanted people to explain to me how the estimated dollars is calculated. This is a critical issue that appears to be felt by many steemians. It’s fair.
https://s6.postimg.org/erlzcvlpt/Otherissueson_paymenbt.jpg

A new steemit user sent in 3.4 bitcoins, based on the value of the bitcoins which is worth 3.4*640 = $2176, the estimated value should have been at the least the value of the bitcoins. This wasn’t so. Few things could have happened.

1.	Since the user purchased this from steemit and since blocktrade facilitates the trade, it’s possible that he got stuck with a wrong end of an arbitrage and potentially lost huge sum of money. 
2.	Steemit is just using a wrong price signal to calculate this estimated value function
either way the issue is critical or it bothers significant numbers of people. Then came the upvotes. As shown on the attached picture below. The post that I made received 18 votes. That’s a lot of votes from the community. However the dollar earned for this post was a meager $0.01 cents even after 24 hours. That’s pitiful. The reason this occurs is that I didn't get a upvote from a whale. A centralized rich guy/gal sitting on their chair and probably dreaming up that house in the Bahamas. Ok. I digress. This is a real issue. Unless otherwise I get voted by a whale, this is going nowhere. This leads to frustrations.
https://s6.postimg.org/rt7o2qa41/18_votes_and_only_get_1_cent.jpg

I could go beg in the street, no thoughts involved, just extend my hands and I could get 0.01 cents. I am not expressing my frustrations with steemit. The community is new and it has lots of kinks to work out, but mindfulness of key issues regarding user pain points are extremely important.
https://s6.postimg.org/6xldrhdwx/modplayboy_0_610x405.jpg


The dollars that shows in the post is a result of the steempower by those who voted this content. That is clearly how this is calculated. This means that most of these 18 users did not have any steempower. It's understandable as to why that is. In signing up, they have very little steem power. I had to spend 3K just to buy 700 steem power points. That’s a lot of money to throw at the system and not everyone is going to be able to do this. In fact I suspect that less than 1% of the new users are willing to take that kind of risk. This therefore is going to be a major pain point for steemit users for foreseeable future and something needs to be done about it.

Steem power  and the poorest user class
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I have heard elsewhere that the creators of steemit were powering down in order to distribute steem tokens. This is heroic and wise.  I do not know if that was a rumor. If they are powering down, that’s a great idea and will be viewed as altruistic action by historians in the future. The steem power needs to be distributed to the swarm. Their votes need to have power. High number of votes by poor steemians are extremely valuable.  Ideally, whether a post is good or not should be dictated by the wisdom of the crowd. The crowd therefore need to have their steem power raised. The cost of steem tokens is detrimental for the needed mass adoption. This, therefore, needs to be mitigated. 

Conclusion
----------------------
We are still in the beta stage. Therefore, we need to keep an open mind towards the possible future growth of the platform with a very solid footing.  If the steemians community at large is rich (have high steem power), then the post they support will receive decent tips which will then encourage them to post even further and the cyclic support mechanism is established. This is what’s needed if steemit wants to reach status far superior to facebook, reddit etc.
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vote details (22)
@akareyon ·
$0.06
I am not much interested in the monetization aspects of Steem, what worth a post or an upvote has in U$ or BTC. Being poor, I intend my only investment to consist of the time spent posting and voting and using all ensuing SP to upvote valuable content.

What I do care about is the promise of free speech and freedom of expression, of fairness and mobility.

And as of now, it looks as if the wealth distribution function is - deliberately, or by accident - designed so that, in the long run, the "wealthy" receive more and the "poor" give up even more of their power: content will only be visible if approved by the haves, and as long as the have-nots do not collaborate in a concentrated effort ("Spirit Bomb") -- which they will likely not do, judging from experience, being distracted and preoccupied with their pet peeves -- their issues will never reach the intended audience. The result: tbe usual broth of cat pics, soft porn, clickbait and propaganda, err, sponsored content. 

Expecting future whales to power down for the sake of the community and a better [Gini coefficient](https://en.wikipedia.org/wiki/Gini_coefficient) like the founders did yesterday is a bit optimistic for my taste, especially if and when Steem actually _does_ take the place FB and reddit have today - as a tool for professional opinion shapers, advertisers, propagandists and alphabeth soup agencies to reach the broadest audience possible. 

And, before someone objects: this has nothing to do with envy. Better be the village idiot in a world of abundance than prince of a tyrant. 

That is why I am happy that others - such as yourself - do seem to find similar issues with the way Steem, so far, seems to work, and formulate their concerns.

It will be interesting to observe how a game will pan out under these rules. Steem styles itself an experiment, and having a scientific education, I am looking forward to its outcome and what it will prove :)
👍  
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vote details (1)
@himalayanguru ·
I am optimistic that the power will be distributed to people as swiftly as possible.
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@clement ·
I read somewhere that the estimated value is based on the average value of a steem
👍  
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vote details (1)
@himalayanguru ·
This number is coming up now. I think you are right about the average value used as calculation. This number has come back up now.
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@himalayanguru · (edited)
and here is the problem. I posted this article 7 minutes ago, and so many upvotes comes in. No comment as to the content of what was written. Did anyone even read what I wrote? How is this good?  Let's have deep reflections about this as a community and let's make steemit what it deserves to be.
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@andrewsanderson ·
Hi @himalayanguru,
I totally agree with you, there must be something wrong with the Estimated Value calculator code or we just simply cannot get this 7 day-moving average. Luckily it says Estimated Value and not just Value and do not forget everything is worth what its purchaser will pay for it so I would not worry too much about it even though it is a bit annoying.
👍  
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vote details (1)
@himalayanguru ·
This issue with estimated value is resolved. We can see now that the prices has caught up.
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