I find that for every brilliant insight Dan Larimer has, he balances it off with something awful/too complicated/possibly sleazy.
Like the liquidity algo has been solved for 100 years...
Just (a) pay every liquidity maker and (b) charge every liquidity taker. Or just do (a) on Steemit.
So there is industry standard practice, but Steemit does something extremely unorthodox. Why?
Well, for one thing the price of STEEM on the Steemit-Market is constantly suppressed...
Right now STEEM costs about $4.45 USD on Polo... but only $3.09 USD on Steemit-Market (30% discount).
But when a n00b uses the Deposit Function to "Buy STEEM" with BTC...
Steemit Inc is charging $4.69 right now... then can just buy it back for $3.09.
Steemit Inc could be making $100,000/day or whatever off n00bs because they have a monopoly on BTC for STEEM deposits...
But for this to work they need fake "liquidity provider" whales to keep the Steemit-Market price suppressed.
Personally, after about 300 trades I've sold STEEM on the Steemit-Market maybe 2-3 times (I'm always buying it there cheaper).
Call it a conspiracy theory, but I can't see any rational basis for the bizarre algos and market inefficiencies.
Baby Dan and Daddy Stan are serial crooks. If anybody hasn't figured this out yet they are either brand new to crypto, not paying attention, or mentally retarded.
Yeah I agree with most all of that, except the part I highlighted in blue w.r.t. to my prior post.
Specifically the SP lockup and 1/9 debasement are the key points of design they did correctly. And kudos to them on this concept!
When I reveal my idea for the fixing the long-term funding model, then I think you will appreciate the SP aspect more.
Must create exclusivity with a token else the dominant unit-of-account will always siphon away your transactions. Their plan to build a market place and all sorts of services for SP holders to spend their Steem as they cash out weekly, is not going to create any incoming demand for Steem except for the speculation bubble. They don't have a viable funding model. But I think I know what to do to make it viable.
Here was a list of some of the insider accounts, but apparently not all of them: