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Since I had the clash with the founder of bearshares i have taken a especial interest in the economics of the steemit like blockchains.

This is something i never did in the past because in steemit things are already done and can't be changed. 


But for places starting fresh and there seems to be an explosion of those; studying the architecture of the economic model is very important. 

# VEST STEEM SDB
I am running a clone of the blockchain in the server i use to witness BS, I changed the names of the Assets and did a genesis block and have been testing different combinations to see how the actual model works.

In the STEEM architecture, VESTS are like company shares, STEEM is like the currency of the ecosystem and SBD are IOU aimed at providing a StableCoin to store value and inspire trust.

# I know many bloggers never cared much for rshares, vshares and the such. 

Now what happens is that as blocks are mined by the witnesses new STEEM coins are minted, but also new company shares (VESTS).

If you see the image on the left, you will see i started this iteration of the REV blockchain with an stupid amount of DREAM (the equivalent to STEEM) a number so big i can't pronounce it. ( 100,002,191,528 ![](https://cdn.steemitimages.com/DQmc5tfcb2wME7HD5vo9GVbkyhW6T7z7VoZR5qAd3pcxJri/image.png) one hundred thousand millions?) I left the 9.75% default inflation rate and in only 650 blocks, the witnesses have issued 2.100.000 DREAM, there is still no REV (the equivalent to SBD) because no one is posting so no rewards have been created.

<center> ![](https://cdn.steemitimages.com/DQmT8YxE3MNS7Vkg5WzUrtJWPnbpCYcWJN12rw2WwyJZSDT/image.png)</center>

## I have not found another way to issue SBD than the post rewards  

So if we know that SBDs are debt instruments, and that they are only issued as post rewards, that means that the blockchain is paying you a 50/50 post half in STEEM and half in debt. (we just found on steemit a way to sell that debt outside like many BONDs are sold in the secondary markets in the financial world) 

We should do well without it but the economic model of the STEEM B/C is SBD centric as an insturment of reduction of volatility

## What about the VESTs?
In the beginning it is like a company issues 100 shares and lets say they are backed by X amount of money, in the case of the blockchain it starts with 0 shares and witnesses issue shares as they write blocks. 

So when there are few blocks created the amount of issued shares is small, meaning that they have a higher value, but as time passes and new blocks issue new shares and mint new STEEM the value of both declines.

See the test blockchain at the moment of writing this has  issued: 2.4 million DREAM and 144 thousand VESTS.


# Something it is not clear to me yet is
If there is 2.4 million of DREAM (steem) issued due to the inflation, why the reward fund has only 500K, according the the setup, 12% should go to capitalization (i suppose it is the stake fund) 12% to pay for witnesses and the rest to the reward's pool. 

But it does not seem to match the figures... 

# Another interesting thing, is that the initminer does not get block-producer rewards
That account still holds the 100 thousand millions of the initial mint, but is not increasing in SP nor DREAM stake, I guess it is the one feeding the stake fund with its rewards (Now you see why in bearshares they have bearshares and bearshare... and one of them is disabled as witness)

I had a previous B/C running with two witnesses producing blocks and they were getting rewards.

# I came to the conclusion that:

If i were to start a blockchain the wise thing to do it would be to startit with a initial issuing of 0, so every one worked they way up and create value. 

Also to not affect much the inflation and dilute the value of the company stake. 

However it would be a silly utopian, agorist dream for several reasons:

a) What would be the incentive for people to join? 
I guess only people wanting to work in developing it would adopt it

b) There would be no ways to raise funds since you have nothing to sell
Unless you premine for a while until you had enough stake to sell a little, but at what price would you sell it?
Since it is scarce it should be expensive, and how many people would e willing to buy it knowing that as the system grows it value dilutes?

c) Because of the previous it will be very difficult to have early initial investors
On the other hand you would be effectively selling the fruits of your work and not thin air. 

 
I have my own sidechain used in the @reveur discord for small operations and backed by my meager crypto assets (5000$ that used to be 15000 STEEM).

I have much more to say, but i am used to get only bot engagement so i will stop here.
Please tell me what do you think?

How would you start your own block chain ?


# In case someone wants to witness and play
here are the binaries in the git

```https://github.com/nnnarvaez/ReveurCOIN-binaries```

It does not ask for much as there is no activity, so a small vps will suffice,  i am running a full node for bearshares a test full node for my blockchain and 4 instances of reveurd compiled in high memory mode and my server barely notices.

You can take a look at the inflation and other values here: 
http://dev.rockdio.org/revex/

### Thanks to julian @jga


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