Here we are, on the eve of one of the biggest days in Steemit.com's history.
If you are not quite sure what I am talking about, the witnesses have approved Hard Fork 19 which is set to go live in roughly 16 hours and 58 minutes.
It probably would be inaccurate to say that tomorrow is the biggest HF the currency (and site) has experienced thus far, but it certainly is a big one.
To be honest, just about every HF we have undergone over the past year seems to be "the biggest one in Steem's history" at the time, but that is a topic for another day.
What are the changes in this Hard Fork?
Since I have been involved with Steem and Steemit.com the voting curve has always been squared. Meaning the number of rewards a vote gives was dependent on the value of the post before one votes. An exponential voting curve.
Once the changes are implemented tomorrow, the amount a vote gives will be much more related to the amount of SP the voter owns. A much more linear voting curve.
That is a very basic explanation of the changes, but the full release can be seen here:
https://steemit.com/steemit/@steemitblog/hf19-equality-coming-soon-linear-rewards
Why are these changes needed?
These changes are needed because right now new and smaller accounts have basically no say in how rewards are allocated. The exponential voting curve gives large accounts an exponential advantage that makes the site not much fun for new users.
The hope is that by drastically reducing the impact the largest accounts have over the platform, or at least making that impact proportional to the amount of SP each person owns, it will help the smaller accounts feel like they matter and hopefully that will help tremendously with user retention.
The goal of these changes is not to make everyone equal, the goal is to at least give everyone a taste of what the site was intended to be. A decentralized way to reward other users based on your SP stake.
Will it work?
That is the 64 thousand dollar question.
I have no doubt that the changes will work in the context that new users will suddenly find their votes are able to actually give some rewards and undoubtedly make the site more fun for them which may help encourage them to stick with the site and possibly even make some investments in the platform as time goes on.
The part that is less clear is the vote power increase.
It will be interesting to see how people decide to use their votes with the increased power.
From my understanding the squared voting curve was set up to encourage people to vote for other people's posts. To prevent users from only voting on their own posts and comments. The new linear curve changes those incentives somewhat.
So, while it will undoubtedly help the smallest users, there could be unintended consequences going forward in regards to how people decide to use their votes.
Steemit.com in general is a giant social and economic experiment. No one really knows for sure how things are going to turn out.
Overall, I think the changes are a net positive and I look forward to seeing how it helps the site retain many of it's new users.
This will be my last post pre HF, and I will see you all on the other side!
Here's to hoping for the best!
Image Sources:
http://cz.wallpapers-fenix.eu/Railway/3/7003/
http://firedance99.deviantart.com/art/I-ll-see-you-on-the-other-side-195279022
http://www.cosmeticsdesign-europe.com/Business-Financial/Changes-afoot-for-Coty-and-P-G-but-will-it-work-asks-Euromonitor
