The world of blockchain and cryptocurrencies is fraught with tales of innovation and disruption and stories of controversy and disillusionment. One such story is that of Steem, a blockchain platform that aimed to revolutionise online content creation and distribution. But what started as a promising venture has become a cautionary tale for the crypto community. In this article, we delve into the downfall of Steem, the mass exodus of its community, the creation of the Hive fork, and the current spam-ridden state of the Steemit front page.
The Rise of Steem
Launched in 2016, Steem was a blockchain-based social media platform that sought to incentivise content creation and curation through a novel rewards system. Users could earn Steem tokens by posting, commenting, and upvoting content on its primary interface, Steemit. The idea was revolutionary, as it promised to pay users for their contributions. It starkly contrasts traditional social media platforms where the company reaps the financial benefits of user-generated content.
Steem quickly garnered attention and amassed a dedicated community of users attracted by the potential to monetise their online activities. The platform's growth was impressive, and for a while, it seemed as though Steem was on track to becoming a major player in the social media landscape.
The Cracks Begin to Show
However, as time passed, several issues began to surface. Users who gamed the algorithm to earn more tokens manipulated the platform's reward system, often at the expense of quality content. This led to a concentration of wealth and power within a small group, undermining the democratic ethos that Steem initially promoted.
Moreover, the user interface of Steemit did not evolve at the pace of competitors, leading to a dated experience that struggled to attract new users. The platform's development stagnated, and as the cryptocurrency market faced a downturn, so too did the value of Steem tokens, demotivating users and further exacerbating the platform's problems.
Many of Steem’s promised features and technological additions also failed to materialise. In addition, the lack of transparency and predictability in the platform's governance led to user mistrust. Decisions often seemed arbitrary and not in the community's best interest, further eroding faith in the platform. The promise of a decentralised platform where users had a say in governance was slowly being eroded.
While Steem undoubtedly had some of the fastest blockchain confirmation times around and an ecosystem of dApps (despite having no smart contracts), the lack of ability to create custom tokens and functionality (like the vaporware SMTs) was yet another disappointment. Users felt sidelined and neglected, as their feedback and suggestions seemed to fall on deaf ears. Steem, once a promising contender in the blockchain space, was slowly losing its sheen.
The Takeover and Fork to Hive
The situation took a dramatic turn in early 2020 when Justin Sun, the founder of the Tron Foundation, acquired Steemit Inc., the company behind the Steemit interface. The acquisition sparked fears among the Steem community that Sun would centralise control over the platform and undermine its decentralised principles. In response, a group of Steem community members and witnesses (block producers) initiated a soft fork to limit Sun's influence.
This move led to a contentious struggle for control of the Steem blockchain. In collaboration with several major cryptocurrency exchanges, Sun orchestrated a counteraction that led to the removal of the original witnesses and the installation of accounts affiliated with him. This hostile takeover was met with outrage by the Steem community, which felt betrayed by both Sun and the complicit exchanges.
As a result, many of the community and developers decided to fork the Steem blockchain to create Hive. This new platform would carry on Steem's original vision without the influence of Justin Sun. Hive launched in March 2020 and has since become the primary refuge for those disenchanted with the direction of Steem.
The Current State of Steemit
Following the fork, Steemit's front page has become a shadow of its former self. The exodus of many dedicated content creators and curators has left the platform with a significant reduction in quality content. What remains is often criticised as spammy, with the front page frequently cluttered with low-effort posts, clickbait, and even plagiarised content. This further drove away users and advertisers, reducing the platform's relevance and appeal.
The rewards pool, once a source of excitement and engagement, now often gets drained by a small number of users exploiting the system. The lack of effective content moderation and the departure of many community-driven initiatives have made it difficult for genuine creators to thrive.
Steemit attempted to rebuild the community for a period, but the damage had already been done. The contests and awards they hosted lacked authenticity. They also failed to address the problem of inequality, although the subsequent exodus did somewhat alleviate this issue.
Steemit's failure to adapt and evolve and disregard for its community's needs and concerns ultimately led to its downfall. Its story highlights the importance of transparency, responsiveness, and a commitment to the community in blockchain and cryptocurrencies.
Looking Ahead
The story of Steem serves as a stark reminder of the challenges decentralised platforms face and the importance of governance in the crypto space. The Hive Fork symbolises a community's resilience and determination to uphold the principles of decentralisation, even in the face of adversity.
While the future of Steem remains uncertain, the lessons learned from its downfall will undoubtedly shape the development of future blockchain projects. For those who once found a home on Steem, Hive offers a new beginning and the hope that the original vision of a decentralised, community-driven social media platform can still be realised.