Yesterday I wrote a piece about the reasons behind the recent surge in the price of Steem. The price, as it stands, is ludicrous and it has been engineered through the management of currency supply.
A few weeks ago there was a 7-day freeze upon all payments of rewards followed by an extremely miserable period during which the rewards on posts became so pitiful as to be meaningless and this drove many good steemians away.
Thankfully, a few have returned.
The reason for the meagre rewards was that we had to fill a ’30 Day Rewards Pool’. Given the average gleaning of benefits from the blockchain activities, this amounted to $210,000 of rewards being foregone/delayed/put on ice – the vernacular does not terribly matter. The Community paid for this ‘Pool’ wherever it is and the Pool is allegedly full of unprinted or un-minted (there is no real term) steem tokens.
And yet, there is a shortage which has caused this ludicrous price spike. Why is there a shortage when we have just foregone $210,000 and have received no benefit?
The official version: “the way that rewards are paid is that there is a virtual supply of coins. What these are is basically a mathematical calculation of how many coins can be produced by the blockchain to pay out rewards within the parameters of the inflation rules. No coins are actually minted/generated until the payouts are made. What happened with the filling of the rewards pool period is the supply of virtual coins was incorrectly set too low at the time of the hardfork, and it took it a very long time to 'catch up' to where it thought it could pay out more coins. During that time, basically what happened is the number of new coins that were produced was significantly lower than what it should have been.
The key thing to understand is that the coins that are 'in the rewards pool' do not actually exist
There are no coins in the rewards pool. They are 'virtual'. They are a representation of coins that will exist when the blockchain produces them to pay rewards.”
In other words, the community has just put $210,000 of its money into Steemit Inc. so that Steemit Inc. can generously give it back to us.
That really pisses me off.
So, I started thinking: ‘why would they do all this. Making rewards ‘look’ higher through engineering a shortage of steem and a subsequent price surge is designed to make everyone feel all happy?’
Steem is violently over priced/valued. It has to return to a sensible level. This whole scenario was driven by Steemit Inc. and so … it came as no surprise when I unearthed a little dirt in the detail.
Below are the top accounts. Now it is futile trying to evaluate what went on with a trading house like poloniex or bittrex, even blocktrades. However, do the whales not have a sufficient advantage?
15-25% out-performance over and above the standard uplift – even 50% additional rise. Are you seriously going to suggest that there is a complete coincidence in this matter? It is strange, is it not, that the % over and above the platform average uplift is so similar between these paragons of virtue!
This kind of behaviour has a very clear Name Tag and it is not good.
I need comment no further. I am disgusted.
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