STEEM Politics : Witness Policy for STEEM DOLLAR Supply Increase

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I hate politics, but when the alternative is tyranny and/or apathy I see it as a necessary side-effect of a properly functioning democratic process. In my family I have always encouraged participation in the democratic process. Even though I live in a safe Labor electorate and my vote is usually irrelevant, it’s the principle of it. We are very lucky in Australia to even have the opportunity to vote so I make a point of cherishing it and I take time to be thankful every time I stop to chow down on a Democracy Sausage (this is an Aussie tradition of having BBQs at voting booths).

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On STEEM it is no different. I may be only a small player, but we have elected representatives here called “Witnesses” that we can vote for. They decide on many platform policies that affect us all, so it’s important to understand how and why these policies get decided. There is a democratic process here on STEEM and it’s important to get involved and vote if you care about the future of this blockchain.

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With politics, to my eye there is good politics which focuses on positive, constructive efforts for change….and then there is bad politics which is often negative and divisive. This post is an attempt at some good politics. I want to highlight a network policy along with a handful of witnesses in the Top 60 who are doing something about an issue I care about.

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Yesterday I wrote about how Speculation killed the STEEM DOLLAR Utility and while it may be a controversial subject and I copped a bit of flak for it, I stand by it. Whether you believe the STEEM DOLLAR should return to the $1 USD peg or whether you believe the high STEEM DOLLAR is good for the platform because it rewards Authors more, the Witness policy I am promoting here might appeal to both camps.

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I am talking about the BIAS setting. This is a setting that Witnesses collectively decide on when they publish their price feeds. My understanding is that a positive BIAS setting results in an increased supply of STEEM DOLLARs and a greater share of post rewards being paid in those STEEM DOLLARs. So a positive BIAS actually rewards authors MORE with the currently high price of the STEEM DOLLAR. Increased supply of STEEM DOLLARS also provides some slight overhead resistance for the STEEM DOLLAR price so it can also help to stabilise it against the current speculative wave.

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Now before the Anarcho Capitalists and Libertarians come at me with gnashing teeth and start downvoting me, this is not about Socialism or intervention in the free-market. This is about identifying an increase in demand and then increasing supply to meet that demand. I will use a basic analogy of a Shoe Factory. For years it’s been making ordinary shoes and selling them to the public. All of a sudden these ordinary old shoes have become the latest fashion fad and the public is going nuts for them. So the Shoe Factory cranks up production to meet the heightened demand and the extra profits go back to the Shoe Factory and the workers at the factory get a nice bonus too. This is just basic supply and demand economics at play here.

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So once I had figured out what this BIAS setting was about, I had a look at the Witness rankings HERE to see who was supporting a positive bias. Only 2 of the Top 20 and 8 of the Top 60 Witnesses support this, so I thought I would shout them out and give them kudos for being on top of the situation. It was no surprise that most of these people were already on my Witness list because I have been voting for Witnesses who are actively involved in (and contributing to) the STEEM community.

Witness	Rank	Bias
Hive account@pharesim	16	706%
Hive account@netuoso	18	300%
Hive account@drakos	30	400%
Hive account@abit	31	6567%
Hive account@yabapmatt	39	300%
Hive account@arcange	54	1049%
Hive account@reggaemuffin	56	706%
Hive account@liberosist	57	706%

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Only 3 of these people weren’t already on my Witness list, but they all are now. I’ve spoken to a couple of them about this policy just to make sure I was on the right page. This is what Hive account@reggaemuffin had to say about his BIAS setting :-

My bias is pretty high and tied to the SBD price. This means that (simplified) more SBD gets printed and the price can drop faster. But since I am not that high up in the list and many witnesses disagree with a bias (or just don't know what it does) it does not make a huge difference it the moment.

If there are any other Top 60 Witnesses reading this and willing to change to a positive BIAS then you’ll get my vote too. I should clarify that I have no ambitions of becoming a Witness nor am I anyone’s sock puppet. I am just agitating for what I believe is better Witness policy.

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I’d encourage anyone else who cares about the future of the platform to vote for these Witnesses also. Or, if you don’t feel like you can keep on top of policy decisions like this then please feel free to nominate me as your Proxy to make sure your vote still counts.

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