Steemit Witness solution for overly successful users like Haejin

So most of us at this point have heard about the user Hive account@haejin posting content and taking 7% of the total steem reward pool and from other users like who have issue with him for doing that including Hive account@berniesanders and even steemit founder Hive account@dan.

The concern these users including Hive account@dan have is that someday a small number of accounts will be earning most of the daily reward pool getting richer by the day and leaving the rest of us behind. If cryptocurrency was adopted early because people wanted to avoid the problems of the real world economic system then it will have been for nothing because steemit is on path to become exactly what people were avoiding.

While I agree one account shouldn't be consuming 7% of the daily reward pool I think Hive account@dan downvoting him was a very unprofessional move that shows fundamental issues with the steemit economy which is not a good sign for steemit. As I understand it Hive account@dan did have some ideas on how to fix the economy and was blocked by the witnesses, so perhaps he's doing the only option available to him which is to downvote Hive account@haejin instead of just sitting by and watching it happen.

As a game designer when you're building an mmo economy you have to understand that it is not the fault of a player if they find an unfair way to get rich quick and devalue the economy in the process ruining it for everybody. It is actually a fault of the games design and you do not punish the player for playing by the rules, you patch and balance the game.

Shutting down Hive account@haejin's income will not fix the system and given time a dozen more will rise in his place. It's like applying a bandaid to a broken leg, it will not even stop all of the bleeding let alone heal the wound. A better solution in my mind would be to have a daily reward diminishing returns affect of some sort so that no individual account can take too large a share of the daily reward pools payout.

When somebody gets upvoted 75% of the money goes to the author and 25% goes to the curators to fight over it. So all of Hive account@haejin's posts are getting 75% of the rewards plus any curation profits he gets for upvoting his own post and fighting in the 25%. This doesn't matter whether he does 1 post for $1 or 30 posts for $1000 each his earnings are always relative.

A better system might be to develop a steem profit % diminishing returns system that is weighted to target something like the top 25% of steem authors by value. That's to say it would target everybody but you're really only going to see massive profit nerfing if you're among the top earners on steemit in a day.

So if haejin has some monstrous amount of steem power upvoting him in a 24 hour period and that accounts for say x% of the entire steem power upvote pool used that day and as somebody mentioned the other day is around 7% of the steem reward pool profit. A nerf should lower his author reward rate for that 24hr period to account for all the upvoting he received thus either pushing more rewards to the curators that upvoted him or back to the reward pool for other users posts, while still giving him a healthy portion for his efforts.

If 428,000 steem were rewarded in a 24hr window and his upvote profits were worth $30,000 steem (7%) these are just examples i have no idea what the actual daily steem rewards are. However if that's the case he should be scaled back by say 75% per 1% of the global pool. So in his case his 75% author reward would be scaled by 7 times by 75% granting him just 10.01% rewards instead of 75% for a daily income of $4,004.52 steem instead of the $30,000.00 he'd currently get for 75% of $40,000 worth of upvotes in a single day.

This system could even double the curator rewards with some of his scaled back points to reward fans but it would not be required all extra steem that the author does not receive could simply be returned to the global reward pool for others.

It might look something like this.

Furthermore the 1% total reward pool penalty could also scale to a lower number based on the number of active upvoters in a day so that as the platform expands and say 500 million users are active in a day we can't just have the top 100 accounts taking almost 1% of the reward pool each it would need to scale down to something like .001% so that many people can still be wealthy at the top and the lower classes can still see growth as well.

Therefore the penalty threshhold for the percent of daily rewards needs to scale to expand for users and to allow the middle class of steemit to get better rewards for their content as they will make up the bulk of all quality content while not as global as the top accounts. We cannot reward the top 100 and nobody else otherwise the entire system will die as more and more profits go to the top and we end up with some sort of occupy steemit rally's for the 99% protesters that or they just quit the site which would have more impact.

Steems usd value is going to be driven by the ability to use steempower as a form of marketing to get global reach on the platform. If there's no money in the platform for anybody but the top 1% eventually users will leave for some steem 2.0 clone product and everything we have all built here will be worth nothing.

We need to make the changes now to save steemit from itself the longer we wait the worse off the system will be so if it is the witnesses who have the power to correct the economy you need to look at the big picture and make the changes required to keep steemit alive and to make sure all the influence, wealth and power that you've built up here doesn't fall apart when a rival service that's just like steem only better starts stealing all the users.