I hate bidbots, because i love steem
Back when there was only and two or three others, it was a fair game, some people where delegating to it to get passive income, and there was a lot of SP allocated to either manual curation or delegated to startup curation projects trying to reward original content creators.
Then released for free in GIT Hub the code for the bidbots and they sprout like fungus in the ecosystem.
This acted as a SP vacuum, suddenly everyone was leasing SP to the BIdBOTS which made the price of leased delegations surge, and of course over time many free delegations where retired as a bidbot offers up to 21% ROI to delegators and vote sellers.
This killed many curation projects, not everyone can invest, so these once thriving curation projects started drying then died, and people working actively promoting steem adoption and user retention, by rewarding original content creators stopped trying. Jobs in the blockChain were lost
...They could not compete with the bidbots.
Initially the concept of bidbots was post promotion.
If you put in trending your post, well some whale might see it, like it and vote for a better reward... But the vicious circle of ROI actually drove all that organic curation to power up the bidbots and then the promotion concept was not valid anymore.
We used to think tank of a solution
I tried modifying code to warranty a return for the authors, but this didn't take because no one delegated to the bot, if we share part of the rewards pool with the content creator, well... It is less money in our pockets, so people kept delegating to the promotion bots blindly and ignored the compounding problem.
Then the guys of @OCD came with a great idea (The distribution bot)
When I was invited to give a hand with the distribution bot project I felt it was the only way to go as many others thought.
I used to think the distribution bot was a smart way to get a return and make my posts look fancy and trending, a great alternative to the bidbots that do not even give a return you pay for a vote and you get less.
@OCDB as a distribution bot gives a positive ROI and if my post was trending I would for sure get a few nice upvotes, I used to think that I didn't get more than 1$ reward on my posts because i used to write in spanish.
So I started using it after discovering i was in the whitelist.
I was hoping that if i sent the max amount to my posts I would get that much desired visibility and also make a little benefit.
So lets crunch the numbers let's use one of my posts for that.
This one is 6 days old, i guess it has been around enough time for whoever was to see it in the trending have done so and voted if he wanted.
So according to the payout breakdown:
I sent 86 STEEM to and received a vote 53% vote =- 45$ (Nice thanks!)
Here is the image:
The total payout is 45.407 $ so 99% of the payout comes from our beloved bot and 40 cents from other voters, some are friends who have setup a fanvote for me, others are organic curators (BIG THANKS TO YOU) .
Nice results ! wont you say ?..
I sent 86 STEEM and got 90 back, 4 STEEM Return on my vote that is nice !
Invest 86, get 6 back in 7 days, that is a a wooping 4.44% return on investment!
Now lets take a look deeper...
Where the 90 steem i got in the form of a vote come from ? Yes you guessed right, the Rewards Pool... What is the rewards pool for? According to the white paper is inflation to reward original content creators.
As an incentive so stake holders actual perform curation the earn up to 25% of the vote value as curation reward, that is how the platform was meant to work.
So I am paying 86 STEEM for a 90 Steem net vote, the BOT selling me (distributing the vote) is getting 31 SP (Steem) as reward for voting my content.
The content creator does the proof of brain, and pays to obtain a ROI of 4.44%, while the curator gets a ROI of 24.25%
But not only that... they also get the 86 steem I paid.
I think something is wrong with my calculations ?
The bot is getting 86 from me + 31 from the reward's pool = 117 STEEM
I am getting 90 from the reward pool - 86 i paid to have the privilege = 4 STEEM
Uhmm no, i am messing the numbers, it can't be!
Well after giving it much thought i think maybe it is because i am not a good enough blogger, but nonetheless I would like to invite the @OCDB team which i know personally and I know they are fair, to reconsider the way the distribution is being distributed by the bot.
I think that a better deal can be offered to those making the proof of brain, the content creators... a more balanced distribution so the few authors that still believe in sharing content are better rewarded ?
My content might not be quality content, but it is original, of that i am sure.
(I made it myself)
Some will try to explain to me that this is due to the high price of steem that is skewing the reward distribution and reducing payment...
Well I am a small stake holder and the same as the rest of you, dream for steem to go to the moon so my investment crows in value.
If steem price is what is reducing the rewards... That can't be right, we all want steem to be high.
I think that a distribution bot should incentive its customer base by a bigger share of the cake, afterall, the reward pool is meant to reward the content creators, no content creators, no content, no content no justification for STEEM...
Oh wait we can always play DrugWars and SteemMonsters, but then...
It is not the fault of @OCDB
They do not keep a share of the earnings, they trully distribute all the earnings + the curation rewards and their curation rewards are massive most of the time 24% as they tend to be the bigger voter.
The problem is greed of the delegators, the only reason people is delegating to them is because they get more money from @OCDB bot than from a normal bidbot (or at least the same amount of money).
But once again no one is thinking of the author... In order to be able to compete in ROI for the stake holders most of the money drained from the reward pool ends up in the hands of the delegators and the rewards on the content created by the author even thou they are high, since they come at a high cost by buying the vote they are not proportionally equitable.
If they were to give the votes cheaper, it would mean the delegators would need to sacrifice revenue... And then they will just simply leave to the next bidbot...
Lets see what gives up first, the content creators or the bidBOT business
Think about it... If the content creators leave... well erm...
We are not a content creation platform anymore...
I don't know please can someone help me with the calculations? I know i am wrong.
The only way to solve the problem...
Would be to stop using the bots altogether, once the stake-holders stop receiving payments because there are no customers buying the votes, maybe then they will realize there should be a proper distribution of the rewards pool.
Then maybe the price of leased delegations will come back to a level were a win/win situation can be achieved.
Then maybe content creators will adopt the platform as their effort is being recognized.
Smart bot owners will adapt their profit and smart stake holders will adapt the allocation of their stake to organic and paid curation.
Smart entrepeneurs will restart the organic curation projects and the ecosystem might come back to a healthy balance.
Less abuse from the post farmers as humans will be deciding the rewards.
You may say i'm a dreamer...
But I'm not the only one.