Author Upvoting, Rewards Pool, DPOS and Voter Diversification

LeoFinance
15 days ago
(edited)
4 Min Read
814 Words

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Why it matters to you and me

I think this concept of voter diversification, combined with the reward system from the Steemit/Hive platform, now modified with linear creation on the Leofinance second layer community provides incentives to curators to diversify their votes amongst Newcommers and veterans alike, which improves new account retention, enlarges the community and makes it stronger, larger and improves content quality.

How did I arrive at this conclusion?

I read a post by @onealfa a few days ago, and honestly I didn’t get it the first time I read it, and I was embarrassed a bit that I didn’t understand the importance of voter diversification.
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So...I clicked on the link in the post to an article by @leofinance which contained an explanation of the topic.

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Then...I then went back to the @onealfa post and read it again. And I had this moment of clarity, which I wish to share.

You see, not only did I feel I understood what @onealfa was saying, but I also felt happy because I realized that the Hive reward system, which allows Stake to determines the amount of the daily reward pool which is awarded to authors, and the modification of the Hive model by the Leofinance called linear curation, means that curators or post upvotes earn the same amount regardless of when you vote or whether you vote on posts with large rewards or small rewards.

This allows Voter Diversification...

because now as an Content voter or curator as we call them, you make or earn the same whether you vote on a new unknown author with a small post reward, as you would voting on a famous author with a large post reward.

Linear curation...

This important thing to point out is that linear curation, as implemented on Leofinance is a modification to the stake based reward system we had on Steemit, and currently have on Hive.

Because on those platform the earlier you vote increases your reward, and voting on posts with larger rewards increases the size of your reward.

This incentivizes you not to vote for new authors who may get smaller post rewards and incentivizes you not to read the post before voting because that makes you lose money.

Here on Leofinance those incentives are removed and Voter Diversification and more widespread engagement and rewards distribution occurs.

This means that members of our community with stake can diversify their votes to provide smaller percentages, amongst a larger number of authors, and earn the same amount they would by upvoting a larger percentage to a much smaller number of authors.

Whale Activity

This incentivizes large stake holders or Whales to due what’s in the best interest of our community. And most likely increases the value of our token over time.

Plus most importantly it illustrates two great concepts behind the Steemit/Hive Grand Promise or Great Potential of DPOS.

The grand promise of DPOS

I think the true promise of DPOS is ....

#First,
This ability to distribute the daily reward pool to others and 50% of what you distribute coming back to you incentivizes upvoting and rewards. So the more you vote, the more you make, but also means the more you vote, the more other people make also. Thus everyone is incentivized to vote and reward others as much as possible.

This is like Karma..

The principle of Karma is doing good things let’s you build up a store of goodwill, but our system doesn’t build up something intangible like goodwill. It builds something tangible called rewards. Which you can use to buy food, water and shelter.

#Second,
You can by upvoting with your stake, distribute portions of the daily reward pool, to reward those who produce good content for our community, at no cost to yourself!

A single candle...

This principle is similar to the concept that a single candle can be used to light a thousand other candles, at no cost to itself.

Finally, I see a Positive Feedback Loop

The great thing is that voter diversification encourages new authors, enlarges the community and results in more upvotes and rewards for those who engage in voter diversification. So more people make money and people are rewarded for helping more people make money. It’s like s reverse Ponzi scheme where the people who join first are rewarded not for taking money from the people who join later, but instead are rewarded for making sure that the people who join later make money!

I hope that doesn’t offend anyone, it’s just an illustration.

Wow Now You know what made me smile!

That was what made me smile and I hope I have explained it well enough, to make you smile too.

Thank you Turok Macto! [@onealfa]

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Written by @shortsegments

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Posted Using LeoFinance Beta