The payout structure is based on Zipfs Law (google it) as found on Steemits white paper pg 20. Zipfs is used for casinos and lotteries. The 1%, 10%, 89% The house gets 90% and the 10% remaining wealth is distributed to the top 10%. Creating wealth effect for the 89% to dream of. A slot machine example, house takes 90%, allows 10% to pay out while the end user creates the cash. The lottery only works if people keep buying worthless tickets. Hence Whales are the top 1%, Dolphins are the top 10 %, minnows are 89%. There is no fish in between. The minnows grow the platform, causing the company and its self-controlled crypto currency to increase in value.
RE: Is there an ugly truth behind Steemit? This article tries to make the case: