Steemit Hardfork Hiccup Fix In Works; STEEM Loses Recent Gains

Steem (STEEM) went through a 31% pre-hardfork spike at the start of the week in the run up to Hardfork 20 (HF20), codenamed Velocity. Much, but not all, of those gains have been wiped out over the last day or so as the STEEM market corrected itself after the recent spike.

Today the Steemit team took to its official blog to calm fears over an unexpected hiccup in the hardfork process, which went to plan excepting one issue.

Voting Power Oversight

Many users on the Steem blockchain saw their voting power drop considerably after implementation of the hardfork, essentially meaning their Steem Power (SP) accounted for less influence on the blockchain than it should have.

Today, this post on the Steemit official blog confirmed the issue, and set a five day target for resolving it:

“Many users are experiencing an issue where voting power appears to drop dramatically upon first using the blockchain after HF20. We have diagnosed the cause for this and confirmed that the issue will resolve within 5 days and does not require a hardfork.”

It appears as though five days is how long it will take for the voting power to regenerate automatically, however accounts will be affected differently based on how often they are used, how much they are worth, and how recently their last vote was made.

The source of the issue is summarized thus:

“During the implementation of the Resource Credit system, voting power was rescaled and no scaling factor was added to ensure a consistent user experience. This was an oversight on our part and for this we apologize. Again, this behavior is a one time issue that will resolve itself over the next 5 days.”

Steem Power is one of three currencies tied to the Steem blockchain, and is ‘locked in’ in order to act as a user’s ‘weight’ or ‘influence’. SP can be withdrawn as STEEM over a series of weekly installments – a method meant to ensure the blockchain can’t be crashed in a brief window by coordinated withdrawals.

A vote on Steemit amounts to the same as an upvote or a like, except it comes with a gift of cryptocurrency, either STEEM or SP – depending on how a user chooses to receive it. SBD and STEEM can also be sent from account to account as a payment and/or tip.

Hardfork Spike Corrects Itself

After surging 31% on Monday and arriving at a coin price of $1.12, STEEM has fallen 18% in the other direction, landing at a valuation of $0.908830 on Wednesday afternoon.

Volume has departed STEEM since Monday’s spike, falling from $14 million to around $4 million – the majority of which is found coming from Bithumb’s STEEM/KRW pair.

STEEM prices flirted with the $4 range today on Bithumb, and its price – but not its volume – has been excluded from official readings on CoinMarketCap.

Featured image courtesy of Shutterstock. 

Greg Thomson is a freelance writer who contributes to leading cryptocurrency and blockchain publications like CCN, Hacked, and others.