Update

Will HF-21 fix the Pareto Effect?

The Pareto Effect or Principle, also known as the 80/20 rule is something that seems like a universal law and we certainly see it here on Steem as it pertains to creators and consumers.

There is no doubt in my mind that this 80/20 number would be an appropriate proportion. A creator needs a large audience, or pool to support his or her work.

If we have about 20 percent of the accounts that create meaningful content and the rest of the 80 percent just consume it, I think that makes sense on a variety of levels.

I think the lack of an appropriate strategy for this Pareto Effect is the main problem we are seeing in Steem retention today. From what I can see, Steem is built pretty much strictly for active creators and curators. That’s a great start, and a great way to create value, but all markets rely on the masses of consumers that want quality content at a reasonable fee.

Steem can create that market and I think the changes in HF-21 are going in the right direction.

The reason I think this is a major improvement is because it gives enough incentive to the small account holders that will probably never be much more than small holders to see a small return. I think this may be just enough gamification and therefore also an incentive to dramatically increase retention rates. When that happens, creators will benefit at an ever increasing rate and the whole platform will start to really come to life.

So, will HF-21 benefit the creators? I think, YES.

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