Steem experiment: Burn post #101

Burnpost three month status and update
smooth (68) in steem • 6 days ago
The Hive account@burnpost initiative has steadily gained support and is now consistently receiving rewards of about $500-$600 (displayed post value) per day. Thank you to all of the supporters who have made this possible.

We have regularly sold all of the reward SBD on the internal market for STEEM, helping to exert downward price pressure on SBD toward the $1 peg (along with upward price pressure on STEEM), and have powered up a total of about 11000 SP (currently worth about $33000). This stash of powered-up SP is supporting downvote-only initiatives to help counter the most harmful abuse (at least in terms of blockchain cost) high volume self-rewarded spam.

Finally this has helped 'drain the swamp' by directing rewards away from the vote-buying, bid bots, circle jerks, and other wasteful nonsense that is increasingly beginning to dominate the platform, and instead toward goals which are clearly of benefit to all stakeholders and indeed the entire platform: Designated buying and burning to increase the price of STEEM; increasing the STEEM market cap; harnessing voluntary vote support and market forces to improve the performance (even if only marginally so far) of the SBD peg, making it more useful and reducing the imbalances (such as negligible curation rewards) caused by overvalued SBD; and finally helping to stop spammers and similar forms of clear abuse.

As a reminder, once SBD declines back to $1 or below, the STEEM received by Hive account@burnpost (including all post rewards which have so far been powered up) will be powered down and/or burned by sending to Hive account@null. None of the coins received by Hive account@burnpost will ever be sold or otherwise distributed. They are irrevocably designated for burning.

If Hive account@burnpost rewards remain consistently above $500 (displayed) each, I will soon expand the initiative to make one post per 12 hours instead of one post per 24 hours. Supporters are welcome to support one, both, or neither of these posts (all votes are welcome and appreciated), but by creating two posts this allows those stakeholders who wish to vote in favor of the Hive account@burnpost goals to optionally increase their ongoing rate of support.

The existing rules and procedures remain in effect as described in the previous post.

All rewards from this post will be sent to Hive account@burnpost as a donation which will then be traded from SBD to STEEM, powered up, and/or burned in accordance with the usual Hive account@burnpost rules. That includes SP which will be immediately sent in the form of STEEM from my own account.

PROMOTE
steem experimental burn-post
6 days ago by smooth (68)$246.79
87 votes
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cryptosharon (58) · 6 days ago
What if you burn all the rewards that Hive account@burnpost has and then SBD leaves its peg? You would have to start from scratch to get funds to do another round of pegging. Why not just leave the funds there and "moderate" the price feed through continuous action?

$2.34
5 votes
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smooth (68) · 6 days ago
That's a reasonable suggestion. I'll consider it. As long as the funds stay in the account for eventual burning, it should still be effective and not violate the conditions that supporters have voted for. This is similar to the current use of the SP for downvoing while it is waiting for conditions to change when it would eventually be burned. I think we can come up with something sensible along these lines.

$0.07
2 votes
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katharsisdrill (68) · 5 days ago
The experiment becomes an institution :) For me the most interesting part of Steemit has been to see the spontaneous evolution of user-driven institutions like steemcleaners, Curie et all.

$1.36
2 votes
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steevc (70) · 6 days ago
It's good to see people sacrificing some short term gain for the good of the platform. Greed could kill it. Personally I'm delegating to minnows and doing a little flagging, but my vote can counter the serious abuse and I risk retaliation. Having accounts we can delegate or donate to that do the flagging may help.

$2.04
5 votes
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aaarif (32) · 3 days ago
Hive account@steevc, can you tell me about flagging? why it is needed, benefit of it.
or if you have any link to study about it, please provide me.
or any video of youtube.
Thanks anyway :)

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steevc (70) · 3 days ago
It's a way to deal with spam and anything else you consider an abuse of steemit. The reason some people don't do it is they fear getting flagged back. You can see I was flagged by some big people for criticising them and taking away a few cents of their huge rewards. That can destroy a new account's reputation

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aaarif (32) · 2 days ago
Hive account@steevc, thanks for the info,
now i almost got the matter.

$0.03
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zorank (37) · 6 days ago
Agree, this platform can survive only if quality minnows will be supported.

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rose98734 (54) · 6 days ago
Is there any evidence that these downvoting initiatives are having an effect? I read somewhere about Operation Clean Trending as well - but the front page looks as bought as ever.

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smooth (68) · 6 days ago
The downvoting this is currently supporting is mostly high volume spam on comments that (via self-voting) earn a small amout each (say $0.02). You will never see them on the front page but they have the potential to cause a lot of damage (even more than now, because what is profitable has a tendency to grow and attract imitators) if unopposed.

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stimialiti (54) · 6 days ago
Why are you certain that the person with the keys to Hive account@null will never redeem/liquidate his account?

I already saw a delegator to Hive account@promoted un-delegate from it.

I am sorry that I used it.
My ROI was about -70%.
It could give me a 100% or more, but its designers made sure that using it will be very wrong.
It is one of my worst self sabotages here, together with not upvoting myself in my first 2 weeks right before STINC killed my account by leaving me with slightly less than 6SP.

$0.38
4 votes
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smooth (68) · 6 days ago
The Hive account@null account is a special system account and no one has the keys to it. And any transfers to Hive account@null are immediately erased by the system so there is nothing left to redeem or liquidate (you can check for yourself, the balance is always zero even though people transfer to it).

$0.90
5 votes
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stimialiti (54) · 6 days ago
So it is a burn.
New day, new thing to know.

$0.57
2 votes
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luckyvotes (36) · 6 days ago
You got a 14.29% upvote from Hive account@luckyvotes courtesy of Hive account@stimialiti!

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sleeplesswhale (39) · 42 minutes ago
You got a 8.77% upvote from Hive account@sleeplesswhale courtesy of Hive account@stimialiti!

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ubot (42) · 6 days ago
You got a 13.64% upvote from Hive account@ubot courtesy of Hive account@stimialiti! Send 0.05 Steem or SBD to Hive account@ubot for an upvote with link of post in memo.

Every post gets Resteemed (follow us to get your post more exposure)!

98% of earnings paid daily to delegators! Go to www.ubot.ws for details.

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mysearchisover (53) · 6 days ago
So you're making it harder for people to power up? That seems counter-intuitive to me.

$0.35
2 votes
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marvettsy (44) · 5 days ago
Yes,I feel it is counter-intuitive too. Why not make powering up as easy as powering down is?

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candy49 (57) · 6 days ago
Instead of using the steempower for downvotes, wouldn't it be better to just go to the new tab and upvote anything that is reasonably good? It should have the same effect as downvoting in that you are shifting the distribution.

$0.09
7 votes
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smooth (68) · 6 days ago
It doesn't have quite the same effect. There is a lot of content that is neutral but not necessarily harmful. But when someone is posting thousands of comments per day and voting each with dozens or hundreds of accounts in order to try to earn $0.02 each, that is causing a lot of long term damage (all of those comments and votes end up being stored on blockchain forever).

Hive account@indigoocean also made a good point about there not always being agreement on what is worth upvoting, and people who don't agree with the upvote policies might then decide not to support the initiative at all. There should be very little disagreement on downvoting aggressive spam and other clear forms of abuse.

$0.04
1 vote
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indigoocean (55) · 6 days ago
I think the issue may be that it is easier to objectively agree about what is bad than about what is good. With a collective effort like this, you don't want personal biases controlling this much SP. But I share your desire to see more curation of the good by high SP folks than all the focus on punishing the bad. It may just be that the latter is causing an existential crisis for the platform right now, so has to be prioritized in the short-term.

$0.03
1 vote
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tts (55) · 6 days ago
To listen to the audio version of this article click on the play image.

Brought to you by Hive account@tts. If you find it useful please consider upvote this reply.

$0.07
1 vote
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phgnomo (57) · 2 days ago
Ok, interesting Idea, but here is an interesting question:

How does the sell sbd for steem will drive SBD price down? For me It doesnt make sense.

If the initiative would be to drive SBD closer to 1 usd, then this SBD should be sold at exchanges for BTC(or usd is possible), then the BTC should be used to buy steem at the same exchanges, and then back to steemit account.

Trading It on internal market Will only drive the steem price up, wich Will discourage people to trade their SBD for steem, because they Will get less steem/SBD (unless you people are Trading on both ends). Actually this would encourage to sell their steem.

$0.03
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roselover (55) · 6 days ago
You must start again to be brave and patient
Good suggestion I wish you every success

$0.01
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sutter (25) · 1 hour ago
I upvoted this post because I enjoy social media with initiative to maintain a respectful community.

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saracampero (47) · 4 days ago
Great article Hive account@smooth, nice initiative. I am interested in contributing to your cause and constantly support the project

God bless you and fill you with success, friend. regards

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yourinfo (50) · 5 days ago
hello,please i am about starting a charity organization and i believe anyone can help us donate to this charity organization in order to save humanity and make the world a better place....you can donate to us by delegating part of your steempower to us as your own form of donation....GOD bless you as you do so.....thanks in advance...

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loryana (33) · 3 days ago
Interesthing post

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artcreator (31) · 3 days ago
Steemit its a very good idea to keep coming up with promotions which is benefiting many i a good way. unlike others brands which only make money from ppl for by selling junk in golden wraper, Steemit is the most evolved futurstic platform, Hive account@social media Hive account@entertaiment and to earn. Hive account@steemit Hive account@burnpost. steemit burnit

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lunaticpandora (54) · 6 days ago
The and price won't be able to go down to the peg for a long while, the low supply allows anyone with a good amount of money to manipulate it... especially of you keep throwing more sbd their way by selling it. the only way to take down the price is to increase printing rates in my opinion.

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smooth (68) · 6 days ago
Selling SBD never helps someone increase the price of it, no matter how much they already own. At a minimum it is at least an additional incremental cost they need to incur to keep the price propped up, and depending on the presence of other selling pressure (from others who also want to cash out) may have secondary effects sending the price lower still. No one has unlimited funds, and even if they do, propping up SBD is not always going to be the best use for those funds in the entire world.

BTW, how is the printing rate determined?

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lunaticpandora (54) · 6 days ago
The printing rate is determined by the witnesses by modifying their feed bias? There was a movement to bring the price down by increasing the bias but as soon as steem went over and most of witnesses reduced their print bias down to 0 and now we are back at having sbd higher than steem.

$1.36
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smooth (68) · 6 days ago
Unfortuantely the bias is a poor tool for this because the single input affects multiple behaviors. That was behind a lot of the witness reluctance to use it in that manner. Hopefully in the future we can improve the mechanism to offer better tools.

To answer my own question (rhetorical of course) the printing rate is determined in part according to the market cap. So raising the price and market cap of STEEM by buying it and powering it up to designated burn account indirectly increases the print rate. Of course, so far the magnitude of this effect has been somewhat small, at only about $500 per day. But the steady growth in support for Hive account@burnpost raises the prospect of much higher buy and power up rates. Taking a lot of liquid STEEM off the market could have a dramatic effect.

I certainly don't expect to turn the world around on $500/day, but the feedback loops within Hive account@burnpost have been carefully designed to always operate in a beneficial direction at least, with the magnitude left up to the voters.

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lunaticpandora (54) · 6 days ago
I was not aware that the bias modified other behaviors other than the printing of more sbds.

The sbd down to the peg will be better for the platform in the long run and for future businesses that want to run on a stable currency on the platform. So I wish you luck in your endeavours, I'll try to help out by dropping my 0.03c vote every once in a while.

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smooth (68) · 6 days ago
Thank you for your support and thoughts.

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