let's keep a few facts well in mind here:

• Steemit is the only thing like steemit going, and despite this and other flaws, I am and will remain a fan
• Steemit represents the freshest thinking I've seen online in 2016.
• Steemit is an incredible example of the power of blockchains
• While using steemit I've gotten this wierd vibe that I'm a part of something larger. Web sites haven't given me that vibe before, ever.
  • I think that this was related to the original implementation of steem power, which is no longer a part of steemit.

With that in mind, the design flaw is:

Steemit, Inc.

Below I make a case for the toxicity of Steemit, Inc's oversized STEEM holdings. Please let me know if any of my facts are off.

• Blockchains are a whole new way for people to collaborate, and are more efficient than what came before them (corporations).
• Corporations and blockchains are therefore at odds (natural competitors)
• Because corporations are outmoded, they cannot keep up and thus will have the following effects on blockchains:
  • Retardant to progress
  • Parasite

There is a valid argument that "legacy compatibility" via a corporation is needed for successful blockchain apps and communities. This said, any such compatiblity scheme would need to guard the blockchain from the corporation. Corps are subject to human flaws in many ways that blockchains are not, and in order to keep the chain pure, an "oil and water" type scenario must be used. Here are the results of putting soap in the water:

• Steemit, inc. owns 85% of all liquid steem but can never be a trillion dollar company
• STEEM COULD be a trillion dollar currency.
• The link between STEEM's market cap and the value of that 85% of steem serve to depress STEEM price:

If most of gains go into Steemit, Inc, this lowers anyone's incentive to invest in our platform. It also creates other skews/imbalances.

Therefore

If we are talking about nixing steem dollars (which would be as ridiculous as killing Steem Power 1.0) then we should sure as hell talk about rebooting the entire economy with less influence on the part of Steemit, Inc. Please note I am not calling for its disollution or removing it from the community, but for STEEM the chain to prosper, Steemit, Inc. needs to hold less (possibly zero) STEEM.

Let's go through a steemit, inc. zero-steem scenario for a second, think this is really well-worth doing. If steemit, inc. had no stake in the STEEM currency, it would have an immediate need for profit. Profits are needed for a corporation to stay afloat, everyone knows this. Steemit, inc. should not be in the oppositional position of needing to get funds by harming the STEEM price. This is a contradiction on my part as in the past I've praised sell-offs on Steemit, Inc's part because they fund development. In that regard, sell-offs are good.

much, much better for the chain to have its own funding mechanisms and steemit, inc to prosper from selling

• custom blog portals
• steem derivative-dev work
  • Gee, I wonder if this could improve the API situation, because for once, they'd be dogfooding, instead of bitching about someone pointing out something that is PAINFULLY OBVIOUS TO ANY DEVLOPER?
• support
• consulting
• advertising

like many other prosperous open organizations.