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RE: My current thoughts on the economics of the SPORTS token.

in #sportstalk5 years ago

I enjoyed reading your thoughts and am thankful that members of the community are coming together when issues occur!

In time I think we will see a good portion of the @sportsprojects tokens being burnt in some fashion. They are intended to act in the needs of helping develop projects to grow the community but as things stabilize they'll be removed.

The 10 SPORTS was the preferred distribution for the platform until the initial exploit against the SPORTS token happened. This forced us to inflate the token economics to offset the growth the initial abusers had over the platform.

This creates a situation where it's tough to go back down. That's because anyone who has used the platform over the last 30 days would now have a 10 month advantage over any new users that started today at the lowered distribution rate. This will dissuade new users from joining the ecosystem as they will have little way to excel in comparison to the early adopters.

The recent changes with the addition of @sportsvoter and the redistribution of inflation towards Steem Power delegation is likely the biggest contributor to changing market conditions. I say inflation but what's actually occurred is new tokens have been decreased to 80 while the 20% are being paid from @sportsprojects until this idea pans out to be worthy of distributing actual inflation. Since rewards have been paid out to SP delegators as liquid SPORTS it's created a large downward pressure on price as new supply is being directly introduced to the market.

To remedy this we will be deploying an update as soon as it can be coded into the system where earnings will be rewarded as SPORTS POWER instead of just liquid SPORTS. In the short term this will lower the supply being distributed to the market as users will need to power down to liquid SPORTS to move to the market.

More importantly this will force delegators to decide if they should be foregoing powering down and instead join the SPORTS community by using their new SPORTS POWER to curate content. I feel this will encourage delegators to be more aligned with the long term vision of SPORTS as opposed to be merely being a financial tool that they use to print more tokens.

In addition to the change towards only SPORTS POWER we'll also be changing the amount that's distributed to 10% of the token's inflation. This will better align the value of @sportsvoter's upvote and thus burn to the number of tokens being distributed through @sportspromo to delegators.

These are still early thoughts so would love to hear your thoughts on the potential upcoming changes in this regard. If you have any suggestions for a better path or are not clear why we'd choose to go a certain path please let me know. The more minds behind this the better it will end up!

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at a 9 month powerdown (please correct me if I'm wrong), A LOT can change including legalities and regulations within Crypto. Taking away liquid further consolidates power into a very few and will attract very few people who want to take the risk of either powering up or investing or even joining.
I've been on the fence on many things which are getting more apparent to quite a few lately. Taking away liquid or making it so that the very concept of a free market are changed will be more disastrous then someone using their stake to "dump" every day. The ones moaning the most about it are not the average user btw. my two pesos

Taking away liquid or making it so that the very concept of a free market are changed will be more disastrous then someone using their stake to "dump" every day.

This makes sense to me.

This creates a situation where it's tough to go back down. That's because anyone who has used the platform over the last 30 days would now have a 10 month advantage over any new users that started today at the lowered distribution rate. This will dissuade new users from joining the ecosystem as they will have little way to excel in comparison to the early adopters.

Right. And no new members will certainly be a major blow, perhaps even worse than a depreciating token value - the token will find a level though, where as it could be impossible to attract new members if they have no chance to grow.

To remedy this we will be deploying an update as soon as it can be coded into the system where earnings will be rewarded as SPORTS POWER instead of just liquid SPORTS.

Hurray! 50/50, 75/25, or even 100/0, SPORTS POWER/Liquid has to be the way to go to counter the free-fall we are seeing (mainly imo due to the largest delegator cashing the lot out instantly as they cannot believe how good the deal is v's Steems other bots). Hopefully the delegates will then use this vested SPORTS power to curate and promote good content from newer accounts as an indirect way to grow their investment.

How is one person to blame? If one person who is selling a lot in a FREE MARKET brings us all to our knees then the stress test failed. There are trillions of tokens, there are issues that run deeper and I see blaming one person on what is probably more of a market correction than anything sorta a red herring. my two pesos

I don't blame them at all, just stating they are the main reason as they earn the most SPORTS each day and are selling them all.

The lesser the user of the community, the lesser is its activities and could result to a much less market activity/transaction.

How about giving users a choice to powerup the reward’s post like the choice we have on steemit where we can decide to where the rewards goes, power or liquid.

You mean you're planning of giving payout in 100% SP without any liquid?

Also, will this be temporarily or permanently?

Its so cool anyway. I hope given payout in SP or either part in liquid. All is fine and good. I'm the community will continue to grow and flourish!

is there a timeframe when those changes will kick in? round about?

I am all for making it happen quick as we can readjust still on the way if needed.

We have already deployed a portion of the updates and anticipate the rest to be deployed tomorrow. I'll be paying delegators bonus liquid rewards for the unexpected change.

https://www.sportstalksocial.com/sportstalk/@sportstalksocial/announcing-changes-to-sportsvoter

I have to tell this @petrickulrich.

where earnings will be rewarded as SPORTS POWER instead of just liquid SPORTS.

It is very good. And I saw that happened a few hours ago. I am really for it.

However, that actually happened without a notice? That is too bad and disappointing. I am not disappointed by the change, but by the way it was done without notice or more discussion.

I was wondering what happened to my payouts. Some proper notice needed to be made so we can prepare for the change etc.

I completely understand your disappointment. It was a miscommunication that I was responsible for and will be rewarding delegators their intended liquid rewards over the coming days.

https://www.sportstalksocial.com/sportstalk/@sportstalksocial/announcing-changes-to-sportsvoter

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