By now most everyone has looked at the Worker Proposals put forth by @blocktrades.
My answer: they both are bad.
Let us look at the two options presented.
Donations
Steemit Inc already has stated it will donate STEEM to the cause but the hypothesis is they do not want to be the only ones. Fair enough. But who else is going to donate? Are the Whales going to fork over hundreds of thousands of STEEM to the cause? Not likely. So that leaves the rest of the community to do it.
Okay, so you expect someone who scratched and clawed his/her way to Dolphin to fork over, what, a hundred STEEM? Really? And even if you did that with every Dolphin, you would get 190K STEEM. That is not getting us very far.
Thus, the donation option is completely unrealistic.
Take From The Author Reward Pool
This one is a beauty.
On Steem we talk about two things; more users and a better distributed token. Ironically, one of the things that is happening is the token is reaching more wallets and the holding of SP is flattening out. Each month I produce a post detailing the changes. It is slow but it is taking place and this is only happening because of the reward pool. And now the process is going to be slowed because the proposal is to cut the rewards by 20%?
I can see why @blocktrades thinks this is a good idea; it does not post much. How much of the STEEM or SP coming in each month is from penning articles? In fact, most of the Whales do not write much, if anything, at all.
No offense to Blocktrades but these are not the accounts who depend upon the reward pool for account growth. So proposal number 2 screws the small to medium sized accounts.
Not exactly a great idea in my view.
Welcome To The New World
I am think we are overlooking one of the simplest of solutions.
Here is the basis of it all: What is the price of STEEM based upon?
Is it supply and demand? The inflation rate? No and No.
The truth is that the price of STEEM is based upon Bitcoin. That is all. It can be dressed up all we want but the price is going to basically move in tandem with Bitcoin. It is how this market works. Sure STEEM can fall in comparison to other alt-coins but that mostly has to do with marketing and pumps.
We all have seen this:
Therefore, why do we not use crypto-economics like it is meant to be. Under this system, we are granted the ability to create our own money. We are not obligated to play by the same scarcity rules.
I hear a lot about people mention the inflation rate and that people do not buy because of STEEM's inflation rate. I do not think that is the case. The rate is 8.5% annually right now. Yes, if someone put $10,000 in, they would lose $850 by the end of the first year.
In the stock market that is a big hit. However, in the world of crypto, that can happen before your second cup of coffee.
We conservatively talk about $10 STEEM. That is 30 times what the price is at now. When you are look at a 30 bagger, do you think 8.5% really matters? It does not.
The Worker Proposal is a great idea because it is focusing upon what is going to enable STEEM to take the rightful place in the top 10 blockchains. We need development and that is what ultimately will attract users. That said, we do not need to screw up the system that is working, especially at the expense of the smaller accounts
So why not use crypto-economics to our advantage? You want to invest in the blockchain, create the money.
I propose adding 5% inflation for one year.
That is about 15M STEEM or $5M at the present price. It would jack the inflation rate up to 13.5%.
I can hear the screams now. But people won't buy the token with that high an inflation rate. I have news for everyone, they are not buying it now. So it really doesn't matter.
Besides, what 5% of the price of STEEM? About 1.4 cents. Again, a move like that happens regularly.
What we are doing is investing in the ecosystem. Using the inflation rate essentially is getting everyone to contribute. We are all giving evenly based upon our stake, if you want to look at it that way.
I prefer to view it this way: if investing in the development of our ecosystem doesn't make this place more than 5% valuable in a year, then we all might as well pack up shop. Imagine the applications that can be churned out over a year with $5M.
Personally I think we will see a much greater return than that based upon what took place on here the last year and a half.
The best part is this does not have to be forever. If we want, we can always opt to burn some STEEM in the future.
At the end of the day, the development rate is much more important than the inflation rate.
It is time to use the powers granted by crypto-economics to our benefit.
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