Review HardFork 22 Changes to author/curator rewards and effect on average users and bidbots.
Background:
There have been detailed posts from @steemitblog about the changes in HardFork 21, which now appears to be less then two weeks or less than 14 days away from implementation. The main changes of importance to average users are of course to author/curator rewards and linear rewards curve.
First, the change from 75/25 to 50/50 split between authors and curators.
This topic should be split into effect on users and effect on bidbots.
Users
The change from 75/25 to 50/50 split between authors and curators means you get as much from curation as you do from authorship, so if you want to maintain your current author rewards you will need to write 33% more or figure out how to curate twice as much, to maintain your income. Since curation or reading posts takes less time then reading posts, I suspect that curation will become a much more prevalent activity on the platform. But curation rewards depend not just on your efforts, but it’s a competition based on time of vote and amount of SP. I suspect that for average users comment author rewards will become more valuable as the competition for article curation rewards intensified. Engagement in the form of comments will remain lucrative due to smaller number of votes and therefore larger share of the reward.
bidbots
The change from 75/25 to 50/50 split between authors and curators means you get as much from curation as you do from authorship. This means, that the vote value from voting bot has to be at least twice of the payment - otherwise the user who requested the vote will loose money (negative ROI). Now right now with 75/25 the bidbot customer or vote buyer needs to get a vote at least x 1.33 times the amount of the payment to make a profit using the vote sellers because author gets 0.75 of the vote, 1/0.75=1.33). This means that with a 50/50 split the vote buyer has to get a vote two times the amount paid just to break even. So to provide positive ROI, the voting service has to give higher upvotes for the same price. This means less income and profit for the investors. But the bidbots normally get a large share of curation, so it may help the investors and it may provide enough Steem to make higher upvotes, but the bidbot needs to decide how to limit bidding to insure positive ROI or risk a large loss in business. The “wild card” or unknow factor is the downvote. If people start downvoting post rewards generated by bidbots this could create a scenario of consistent negative return on investment for vote buyers. This would be difficult to combat.
Conclusion;
The HardFork 21 will require a change in posting behavior on Steemit as author rewards drop 33% and curator rewards increase by 100%. There will most likely be a shift in posters efforts away from posting to curating. There will also be adverse effects on bidbot earnings, which will require higher votes and potentially restricting the number of votes purchased during any 2.4 hour cycle to guarantee a positive roi. Other wise the negative roi could drive businesses away from bidbots. The factor we can’t calculate right now is the impact free downvotes will have on our ecosystem. Hang onto your popcorn folks it’s about to get interesting.
✍🏼 by Shortsegments




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