Steem Proposal: Make Flags/Downvotes Burn Rewards To Null

Summary:

Burn the flagged rewards to null in an effort to benefit every single STEEM holder when users flag each other.

Proposal:

Currently, when a user is flagged, a portion of the pending rewards on that post are redistributed back into the STEEM reward fund. This proposal will provide a suggestion to burn these flagged rewards, preventing them from ever reaching the available STEEM supply on the market. The reason for this is to incentivize large SP holders to flag abuse of the system in effort to protect their own investment.

As it stands, currently if a user is abusing the system and draining the reward pool, there is very little incentive for a large SP holder to step in to flag/downvote the posts. The reason for this is because it is FAR more profitable for the whales to just ignore it and self vote themselves.

However, this logic eventually falls when STEEM can not support the increased selling pressure for network abusers. If the flagged rewards were burned to null instead, every single user would benefit as the available STEEM supply would not be increased. Due to the nature of supply and demand, this would lead to a much high STEEM price over the long term.

Let's make flags great again...

... and let's make them add profit to the entire system, not just the authors/curators!!!!!

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