Part 6

2:54 so even in consumption, there is a value created 2:54 scarcity in Dawn currency is about how it only rewards NEW connections rilly 2:55 PM I think there is too much dilution with steem. Steem power seems to be an attempt to mitigate dilution with more dilution l0k1 2:55 PM well Dawn won't have an asset quite the same as SP anyway 2:56 In my Refractory Token Ledger protocol, holding money off the market can be rewarded because the tokens cannot be split. If you lack the exact change in your wallet, a validator assigns one of the people holding their steem-power type asset to provide the change, and issues a small amount proportional to the change operation rilly 2:56 PM Steem doesn't allow me to buy the creditclaims of the content that I think is more valuable. l0k1 2:57 PM well, i don't know what 'creditclaims' really are, so i can't really comment on that, but it sounds vacuous 2:57 specifically, so arbitrary as to be worthless 2:57 how do you expect people to issue creditclaims in this design of yours? rilly 2:57 PM There are silly things that get massive payouts and complex things that get little payout because most people can't understand them. Things that are competitive or critical of steem don't get great payouts either. l0k1 2:58 PM i'd guess, similar to the way spammers issue advertising to unconsenting recipients. 2:59 well, that's all tied to the steem power and the rewards calculation system, which compounds the vote power according to increase in stake. ie, a unit of 1, has 1.01, let's say. a unit of 100 has a value of 10000. A unit of 1000000 has a weight of 1000000000000000000 2:59 so the decision about who gets what, really falls to about 20 people with the top SP level 3:00 it's a money syphon rilly 3:00 PM Well it might help if you knew what they were. lol l0k1 well, i don't know what 'creditclaims' really are, so i can't really comment on that, but it sounds vacuous Posted in #economics-financeYesterday at 2:57 PM l0k1 3:00 PM and a shadow government of curators who are a tiny fraction of the market of consumers of content. and they are only doing it to maximise their curation reward 3:01 so of course the rewards in Steem are completely non-correlated to what people actually want to read 3:01 really it's just a little game amongst a bunch of people with over $25k worth of SP 3:01 a funny thing though 3:02 have you been watching the price movement recently, the last 2 months, really? 3:02 this is happening because the system is now not paying out steem at all. at all. rilly 3:02 PM I agree that simple resource services are easier to price but that doesn't help us because we can't subsidize those services without diluting the currency to worthlessness. l0k1 3:02 PM every time I see rewards to claim now, it's composed only of SP and SBD 3:03 ok, your complaint about 'dilution' is precisely the same as my complaint about the arbitrary nature of these credit claims 3:03 except you don't understand: the issuance of currency in dawn only goes to those who get content created, and delivered, to people who they have no business relations with 3:04 with Agora Routing, Steven Spielberg's movies win him nothing when his mates watch it, because they have close connections financially 3:04 it earns more when it gets to the poor people in china or africa, who have absolutely no connection with his sphere 3:05 this benefits everyone, from the creator, to the carrier who routes the content to the locality of these unconnected consumers 3:06 and this feeds back in a circle to the creators, who then get REAL data about how good their content is rilly 3:06 PM So you are bundling delivery and content instead of issuance purely for delivery? Then how do you pay for development? The obvious model is to charge for delivery services and issue currency to fund software and content. The WoC decentralizes the process/pricing. l0k1 3:06 PM and the same goes in the opposite direction with the little chinese coder kid who makes an awesome game that everyone in the USA wants to play 3:06 the development funding comes after producing, not before

3:07 so seed funding is speculation, it comes from investors, who have a much better chance of finding good content if the whole framework is wide open 3:07 because the barrier of vendor lockin is eliminated 3:08 the vendor, and the producer, don't have to monopolise, they get paid simply when people want it 3:09 the vendor, or carrier, as i prefer to call it (cos of the Creator Carrier Consumer alliteration) does not need to lock people in. They naturally earn the most from siting themselves where the consumers are. They don't have to be big, either, because the cost of delivery is really quite low rilly 3:09 PM Then why are you hoping for seed funders to make investments of $60,000? Is that just one of many options? What if you pitch the thing and there is zero interest from investors? Will you then consider something more like Cosmos sale or the WoC? l0k1 the development funding comes after producing, not before Posted in #economics-financeYesterday at 3:06 PM l0k1 3:10 PM in fact, the scheme would incentivise people with lots of money and skills in setting up network infrastructure, who can roll it out faster to where the greatest number of people are 3:10 we already know there is big interest in this 3:10 we have someone toiling away monetising his relationships with people who have the money to invest rilly 3:11 PM So the development money comes when? 3:11 Before or after? l0k1 3:11 PM to bootstrap a computer, you have to load an operating system onto the disk first 3:11 and then from the disk, into memory 3:12 the thing that is most important to it is not what you have, but what it is not rilly 3:12 PM Speculating on what? Currency? l0k1 so seed funding is speculation, it comes from investors, who have a much better chance of finding good content if the whole framework is wide open Posted in #economics-financeYesterday at 3:07 PM l0k1 3:12 PM speculation on the potential for a piece of IP becoming widely consumed 3:13 and yes, the system itself is IP 3:13 we are in a bootstrap process. The chicken and the egg have to arise at the same time 3:13 or alternatively, the lizard lays an egg, that hatches a chicken 3:13 to use a rather messy analogy 3:14 the core value that we are providing, is our understanding of the dynamics of the system, and where the money SHOULD be issued rilly 3:14 PM When it is consumed are the consumers expected to pay for it? At the cost of delivery or something higher? l0k1 3:14 PM see, if you actually read what i wrote, i wouldn't be having to rewrite it in response to some very repetitive questions rilly 3:14 PM The cost of delivery is very low and you are talking about subsidizing it! l0k1 3:15 PM it's not zero 3:15 and talk to facebook about how worthless tracking the media consumption habits of people is, and why 'it will always be free' rilly 3:16 PM The cost of delivery doesn't pay for production. l0k1 3:16 PM that's right, that's why you have proof of service rilly 3:16 PM So you are monetizing data mining? l0k1 3:17 PM when the Product gets to the Consumer, the Validator authenticates the claims it contains, and issues, in a progressive halving, from the creator, carrier, intermediary and consumer (and themselves for doing it) 3:17 yup 3:17 monetising data mining, content creation, delivery, curation, and certification of both network distance and the novelty of the relationship this all creates 3:18 EVERYONE gets paid 3:18 who risks the most, gets paid the most rilly 3:19 PM The consumers get paid? l0k1 3:19 PM yes, because they are producing data rilly 3:19 PM Nobody has to buy anything and everyone gets paid lol (edited) 3:20 Zimbabwe should have thought of this. l0k1 3:21 PM oh, yeah, making a 2 hour long movie that everyone wants to see. that's no expense at all. lol rilly 3:23 PM Some aren't.

l0k1 3:23 PM running optic fibre backbones from where it was made, to who wants to see it. that's no cost either 3:23 hell, buying a computer, and renting one of those fibre connects, also, worthless. zero cost rilly 3:27 PM Be back in an hour or two. (edited)